The immediate support level is remains at 1234-1232 and the next support level is about 1200 to 1197. The immediate resistance is remains at 1247-1250. The next resistance level is 1255, which is also a Bollinger mid-band. The market’s volume was reduced by 20% and traded with 615 MIL shares today. This means that more investors sideline or reduce their exposures to avoid holding many stocks during the long holidays. However the softening of the market volume also signal a consolidation phase will be started soon. Most likely the market will goes sideway or slightly downtrend if there is no volume support. There are 390 up counters and 254 down counters.
FBMKLCI Indicators
The Bollinger band contracted another 19% with the candlestick still stay below BBMB, indicates FBMKLCI downtrend had softened with technical rebound. The contraction of the BB also means that the FBMKLCI will consolidate and has a chance to rebound further.
RSI hooked up but still below the threshold 30, indicates FBMKLCI is still bearish and oversold.
STC %K hooked up and broke above 30 at 38.14, indicates FBMKLCI was having a technical rebound. If the %K can rise further to 70, this means that the FBMKLCI will turn bullish biased. The %D still stay below 30 at 12.99, this indicates the FBMKLCI still bearish.
The MACD line dipped below ZERO and the histogram likely to form a rounding bottom. If a rounding bottom is formed the FBMKLCI will has a chance to turn bullish.
All the indicators above remain bearish biased for FBMKLCI. However if the index can breaks 1255 and stay above the mid-band, there is a chance for FBMKLCI to turn bullish. Please refer to the picture of FBMKLCI daily chart for your reference.
Mid term view for FBMKLCI still remain bearish as the candlestick still below the BBMB. The immediate support is 1224 and the resistance is 1250 for mid term.
