Monthly Regional Indices View

Outlook:
The FSSTI index continues to move within the triangle
pattern, which is a sign of consolidation. It is now trading
at the lower trendline support, which is acting as the first
layer of support. The index gapped down two weeks ago,
creating a price resistance at 3240. Generally, the
outlook of the index is bearish as it is trading below the
200-week moving average, and the MACD momentum
indicator has turned bearish with both of the MACD lines
below the zero line. The RSI is trading near the oversold
region, which could raise the odds for a potential short
term rebound to test the gap resistance. A break of the
lower trendline support of 3,110 would accelerate the
downward momentum and hint at further downside at
2,955.

Strategy:
Investors could use the lower trendline support as a
guideline. Once the index breaks below the trendline,
investors could reduce their positions.

Support: 3,110 /2,955
Resistance: 3,285 / 3,400
Analyst
Wong Shueh Ting, CFTe

Outlook
The index has rebounded near its 250-week (purple line)
moving average and has broken above the 20-week (red
line) moving average. The weekly RSI is supported by a
bullish trendline and has just broken above its neutrality
level at 50%. The MACD is above its signal line and 0-
level. However, the index is still capped by two bearish
trendlines since 2018 (red and dark-blue lines).
Therefore, we expect the index to range between the
previous high (29,175) and the 250-week (purple line)
moving average.
As long as the 250-week moving average (around
25,772) is not broken, the index is likely to challenge
29,175 (previous top) again. A break above 29,175
would call for a further advance towards 30,280.
Alternatively, only a downward breakout below the 250-
week moving average would call for a further drop
towards 24,540 (2018 low).

Strategy:
Investors are recommended to continue to accumulate
stocks and use the 250-week MA (around 25,772) to
control risk.

Support: 25,772 (250-week MA), 24,540 (2018 low)
Resistance: 29,175 (previous top), 30,280 (Apr 19 high)
Analyst
Joyce Chan, CMT

Outlook:
Based on the weekly chart, the FMBKLCI continued to
form a series of lower highs and lower lows which show
the continuation of a downtrend pattern. A selling signal
has been given as the index is still trading below the
Ichimoku cloud. This is supported by the Heat Wave
indicators as the Tenkan-sen, Kinjun-sen and Chikao
span lines inter-cross, which suggests a bearish signal.
Given the lack of domestic catalysts, external factors
may have more weightage. Thus, the FBMKLCI may be
vulnerable to negative sentiments regionally. In the near
term, we expect the index to continue on the downside if
it drops and penetrate the psychological support level of
1,500. If the bear continues to control the market, the
index will continue to drop till the next support level of
1,493.
Strategy:
Since the index is still in bearish mode, we suggest
investors take the opportunity when the time is right to
enter the market.

Support: 1,500 / 1,493
Resistance: 1,570 / 1,600
Analyst
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe

Outlook:
The JCI slid in early-February, continuing the slide from
January. The tumble was triggered by fears of the new
Coronavirus outbreak which originated from Wuhan –
China, spooking domestic investors. The JCI has been
forced lower and has broken the psychological support at
6,000; it is now in a bearish trend. That said, although
the outlook is not looking good, there are positive
sentiments with February seasonality of 7x gains and 3x
losses in the past ten years; furthermore, technical
indicators such as the RSI are now showing an oversold
signal – looking for a temporary rebound. Other positive
sentiments are coming from the rupiah which has been
strengthening against the dollar and hit a level as low as
Rp13,650. Looking forward, we expect a rise in volatility
in the month of February with the nearest support at
5,765 and resistance at 6,000.

Strategy:
Selective buy in stocks that have solid fundamentals and
attractive valuation, especially in sectors such as
banking, consumer and property.

Support: 5,875 / 5,765
Resistance: 6,150 / 6,350
Analyst
Maskun Ramli, CFTe

Outlook:
Overall sentiment for the Thai equity market has become
bearish after the SET Index had fallen below 1,550 which
is a key support level. As the SET Index has been falling
below the neck line (1,550) and moving in a downward
channel which indicates that the medium-term outlook
has shifted to a downtrend, we have to presume that we
would possibly continue in a downward movement or
sideways momentum for many months. Also, we have to
set up a strategy based on the downward bias.

Strategy:
1,480-1,500 would be a good buying zone, given that
this level offers a good risk-to-reward payoff. The 1,500
support is derived from the lower bound channel while
the 1,480 support is derived from a trading momentum
(“a”) after the SET Index fell below its support (“b”). We
recommend investors buy at 1,480-1,500 for short-term
trading while investors should consider reducing
exposure/positions if the index falls below the 1,480
support.

Support: 1,500 / 1,480
Resistance: 1,550 / 1,600

Analyst
Sittiporn Jennaimuang

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