FBMKLCI – next support at 1775

Should the FBMKLCI not able to sustain the support level of 1795 today, it might go into a correction with 1775 being the next support. Yes, the MACD, Stochastic has turned negative indicating the sideway trend may end and the index may get pushed down further.

FBMKLCI_20150522

Market wise, there hasn’t been any new development except for the old story of 1MDB, the possible Fitch¬†downgrade of Malaysia Rating. The fact is foreign fund has continued to be net seller of Malaysian shares, the recent one amounting to 168 mil yesterday alone. Well, this is not surprising given foreign fund searching for better return given the weakened Ringgit and the not-so-attractive outlook of Malaysian economy.

The sell down of heavyweight has also caused the second liner and penny stocks continue to be pressured. Stocks such as Airasia, AAX, DRBHICOM, SKPETRO, PERISAI are among those suffered selling pressure in recent days.

Should the 1795 support holds, I would still anticipate short term bearish with very high likelihood of FBMKLCI testing the 1775 level in very short time to come.

 

 

 

 

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