The FBM KLCI advanced by 8.03 points or 0.56% week-on-week, settling at 1,449.93 last Friday. This uptick was influenced by a stronger performance in regional markets, fuelled by strong US performance, thanks to falling Treasury yields, favourable rate decision, and comments from Fed Chief Jerome Powell
While the FBM KLCI surpassed key resistance at 1,442.8 (aligned with the 23.8% Fibonacci retracement), an expected healthy pullback in the US following last week's strong rally could potentially impact regional market sentiment in the short term. Additionally, the 3.4-point gap created by last Friday's strong opening is likely to close this week.
From a technical standpoint, the FBM KLCI is anticipated to retest its immediate resistance-turned-support level at 1,442 this week, and oscillating within the 1,436-1,450 range. Investors are likely to closely monitor developments in the ongoing 3QCY23 earnings season.
A firm break above 1,450 could lead the index to challenge its recent high of 1,465, while a fall below its 13-week SMA at 1,442 may prompt a retest of the next support at 1,429, aligned with the 38.2% Fibonacci retracement.
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