• Asian stocks ended mixed last Friday as investors were concerned on the rising number of coronavirus cases in China.
• Back home, the FBMKLCI dropped 1.63 points (-0.10%) to close at 1,572.81.
• Chart-wise, the index remained below the crucial 1,600-pts level and 20-days SMA. Coupled with the bearish crossover signal from MACD, we expect the index to experience a near-term consolidation. A resumption of the uptrend could be underway only when the index breaks out from the existing consolidation pattern by breaching the 1,600-psychological mark convincingly.
• From here on, its overhead resistance can be seen at 1,630 (R1) and 1,650 (R2).
• Conversely, key support levels can be found at 1,570 (S1) and 1,550 (S2). Beyond these short-term support levels, with the index still caught inside a medium-term downward sloping trend channel, there is also a possibility that the FBMKLCI could subsequently drift lower towards the psychological threshold of 1,500 (which was last tested in Aug 2015).
Source: Kenanga Research - 28 Jan 2020
Created by kiasutrader | Aug 26, 2024