Monday, May 18, 2020

FBMKLCI TP 1500?

FBMKLCI had lots of trading volume lately, but its more on glove and healthcare counter follow by small cap companies. 

The abnormal high volume isn't an healthy phenomena, but we don believe this may last until before Hari Raya holiday.  Hence investor and traders will need to be aware. 

Looking at the chart, if there is a strong breakout at this level, then u may see KLCI heading to the high of 1500 points. Can we? Let's hope for the best. 


FBMKLCI

FBMKLCI was doing quite well over the week, however there are still huge selling pressure above 1400 points where u can see the candle has long upper line. It is interesting to see that the index had rose over the week, however, the last 2 candles had tried to challenge the red resistant line and settle below the line.

Looking at FBMKLCI which is well supported by the uptrend supporting line (thick blue) and it still unable to break the resistant line too. This had form a wedge pattern and we are almost towards the end, this could indicate that FBMKLCI is about to choose its direction.

If we could break the red resistant line decisively with a big bar could indicate bullishness and breaking below the blue supporting line will be bad for FBMKLCI.

 

Resistant: 1. 1412 (50% fibo)                       2. 1420                          3. 1430

Support: 1. 1400                                           2. 1380                          3. 1364


FBMKLCI Weekly

FBMKLCI weekly chart shows a big green bad which formed a bullish engulfing pattern, however it is still an inside bar for 20 April which indicate the chart has yet to decide on its direction.

A breaking up on the red resistant line will indicate bullishness, and breaking up above 1430 might indicate the index are potential to touch 1500 points. However, we believe this could only happen if US market didn’t have any big correction at the meantime.

 

Disclaimer: The materials shown above is just for education purposes. No buy or sell calls are intended. Please consult your brokers for investment decisions. The author above will not be responsible for any trading decision and action taken by the readers.  


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