Last week, we expected the FTSE ASEAN 40 Index to stage a mild pullback toward the 11,000 level with the possibility of the uptrend resuming once selling pressure normalised (refer to Regional Traders’ Almanac date 22th Apr 2019). The index indeed slid lower last week although it did not hit our target at 11,000. Last Friday, the emergence new buying interest likely cut short the pullback and the index rebounded from the middle Bollinger band and formed a “bullish harami” reversal pattern. An uptick in RSI points to stronger momentum ahead and we expect the FTSE ASEAN 40 Index to challenge immediate resistance at 11,247 then our subsequent target at 11,400. For this week, we highlight the potential direction of both large and small cap indices this month across the ASEAN regions.
Source: Maybank Research - 25 Apr 2020
Created by kltrader | Apr 12, 2024