FBMKLCI Mid Week 20 Analysis
The KLCI Index has gone through 10 trading days of continuous negative closing except for 8 May that recorded a small 2 points gain. The trend was a bit out of tandem with the US and other regional markets which had seen some up trend in the past two weeks. Ringgit has gone stronger against the USD since 2 weeks ago but has since been stabled at around 3.60. Oil had come back to 56 few weeks back and will not see any strong uptrend in near future. Foreign fund has been net seller during the last week trade with 460 mil net selling, mostly due to profit taking activities.
Chart wise, MACD has seen it hoovering into negative line and RSI shows that it is touchoing the 30% line going towards oversold region. 1796 is the next support that is likely to be held. If failed, it will go into a medium term bearish of 1777 then 1708. My personal view is that 1796 is likely to hold and rebound to test 1800 the immediate support. If this happens, market is likely trading sideway in the range of 1812-1796 pending new catalyst.