The FBMKLCI has been depressed lately. Looking at the chart below, it makes me feel uneasy. 

Charting the FBMKLCI is more for determining the overall market sentiment, and may have no relation to individual stocks. 

Picture 1: FBMKLCI - Key Support / Resistance Levels

Market sentiment has been bearish. This is evident by the string of black candles in the past 2 weeks. Sentiment became more bearish as the week progressed as the index made 4 consecutive lower closes towards the end of the week. On Friday, October 20, 2017, the market closed at 1,740.65 - immediate support level.

A brief background on the bearish trend

On October 9, once prices failed to rally above resistance at 1,766 - zone of price rejection, prices immediately turned south. Prices broke below key support level of 1,752. 

Based on the current trend, the bear trend will most likely resume until it finds support. Currently, the index is trading at its immediate support 
 

Key support levels

If the support level of 1,742/1,741 fails to hold, further downside is expected. I expect the next support level to be at 1,731. The MACD is looking bearish, and the down trend seems to be persisting until it reaches its support; hopefully, the down trend in the index will be halted at its immediate support level of 1,741 / 1742. 

Listed below are the Key Support and Resistance levels based on Fibonacci levels:

Key Support:
S1: 1,742
S2: 1,736
S3: 1,731
S4: 1,726

Key Resistance:
R1: 1,752
R2: 1,760
R3: 1,767

Final thoughts
The chart above resonates with bearish sentiment. As we know, the FBMKLCI tracks 30 companies. Hence, selective stock picking is essential during this time. 

Personally, I will be staying at the sidelines looking for an opportunity when things are bearish.

Check out The Star Business's Friday 20/10/2017 end of day report >> HERE.