FBM-KLCI tested the upside of the expanding triangle at 1348 yesterday. It corrected quite sharply this morning, dropping to a low of 1334 as at 10.00am. On further weakness, FBM-KLCI may test the support of the 20-day SMA line at 1320. If this support failed, it may test the support of the 50-day SMA line at 1301.


Chart: FBM-KLCI's daily chart as at Apr 8, 2010_10.35am (Source: Quickcharts)

I have commented earlier in the preceding post that some funds managers could be taking profit on stocks which have risen substantially. This profit-taking activity may come & go and if there are sufficient demand for these stocks at lower prices, the selling should not culminate into a reversal of the present bull market. For now, we will have to wait out the on-going correction & try to buy stocks that had dropped back to more attractive prices.