Right now you can see the RSI is getting weaker but it still stays above 70%. So we need to pay more attention if KLCI is approaching 1300 or 1350 level.
(I will share more what is called divergence signal on the related Blog)
Click to enlarge
Thursday, November 19, 2009
Techinal View on FBMKLCI
According to the KLCI's weekly chart below, the resistance is getting stronger as it approaching the 1300(RED line) level which created at the begining of 2008. If it passes the 1300 level successfully, the next resistance level is about 1350 which is much more stronger than before. We predict there might be a major correction if it touches 1350. As you can see from the diagram, KLCI encountered a class C bearish divergence during Oct 09. The market suppose to fall at that time but it did not.
Right now you can see the RSI is getting weaker but it still stays above 70%. So we need to pay more attention if KLCI is approaching 1300 or 1350 level.
(I will share more what is called divergence signal on the related Blog)
Click to enlarge
Right now you can see the RSI is getting weaker but it still stays above 70%. So we need to pay more attention if KLCI is approaching 1300 or 1350 level.
(I will share more what is called divergence signal on the related Blog)
Click to enlarge
