Monthly Technical Regional Indices Outlook

FTSE Straits Times Index (STI IND)

The FSSTI index has rebounded from the low of 2,208.42 that was created since end-Mar 20. This low is near to the long-term rising trendline support (connecting the 1998’s low and 2009’s low), which appears to be a
strong support to the price decline. The momentum indicator, the RSI, is rising from the oversold extreme, increasing chances of the index rebounding from this low. We are likely to see this index moving higher
towards the conversion and base lines resistances at 2,720-2,750, should it stay well above the low at 2,208. The MACD histogram is gaining its upward momentum as well.
Investors could accumulate during the pullback and sell on rally towards the conversion and base lines resistance zone at 2,720-2,750.

Support: 2,208 / 2,140
Resistance: 2,720-2750 / 2,950
Wong Shueh Ting, CFTe

Hang Seng Index (HSI IND)

The index gained support from its long-term bullish trendline (formed since 2008) and formed a hammer reversal pattern during the week of 16 Mar 20. Moreover, the index rebounded sharply with a larger-sized bullish
candle in the week of 23 Mar 20, which is also a positive reversal signal. The index has just broken above its previous top at 23,791, indicating a likely continuation of the rebound. The weekly RSI is turning up from its
oversold level at 30%. The MACD histogram is narrowing up. As long as the long-term bullish trendline (around 22,519) is not broken, the index is likely to challenge its next horizontal key resistance at 25,134. A break above
this level would call for a further rise towards 26,400 (around 20-week moving average; red line).
Investors are recommended to make entry for long positions during any consolidation, and use the long-term bullish trendline (around 22,519) to control risk.

Support: Bullish trendline since 2008 (around 22,519),
21,139 (previous low)
Resistance: 25,134 (horizontal key resistance since
2018), 26,400 (20-week moving average; red line )
Joyce Chan, CMT

FTSE Bursa Malaysia Kuala Lumpur Composite Index

Based on the weekly Ichimoku chart, the FBMKLCI is still trading below the cloud, which indicates a bearish trend. This is supported by bearish crossovers in both the MACD and the DMI, which shows selling pressure has overcome buying pressure. During the last few weeks of trading, the index managed to form a technical rebound from the lowest of 1,206 and closed higher at 1,361.96 this week due to the falling COVID-19 numbers that has improved investor sentiment. We also note an uptick in the RSI despite it still staying below the 50pt threshold, which suggests a slight increase in buying interest even though the “bear” is still in control. We expect the index to trade sideways in the near term if it can remain above
the psychological support level of 1,300. Nevertheless, our medium-term bearish stance is still intact.
Investors can accumulate more even if the market starts
to improve further. For short-term traders, if the index
does not fall below 1,300, speculators can BUY.
Support: 1,319 / 1,300
Resistance: 1,400 / 1,460
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe

Jakarta Stock Exchange Composite Index (JCI IND)

Going into April, the JCI has a chance to stage a light rebound as it had dropped quite significantly last month. However, having said that, the JCI has not emerged from the woods yet, as the COVID-19 pandemic still remains a worry among investors as the number of positive cases
in Indonesia has not shown any signs of slowing down. Global sentiment remains negative as well¸ with the US taking the no.1 spot for the most number of positive COVID-19 cases right now. Technical outlook remains
grim, but indicators such as the RSI have clawed back above its oversold zone, hence implying a chance of a light rebound. However, the trend remains bearish for now, and selling pressure will return as the JCI is
approaching the psychological resistance at 5,000. The USD/IDR reaching above Rp16,000 also add pressure to the JCI as there is a negative correlation between USD/IDR and the JCI. Looking forward, expect a light
rebound but selling pressure remains in place.

Investors should start accumulating, as risk-to-reward
ratio is attractive. Focus remains on stocks with large
capitalisation stock.
Support: 4,390,/ 3,910
Resistance: 5,000 / 5,250
Maskun Ramli, CFTe

Stock Exchange Of Thailand Index (SET IND)

The Thai equity market has completely entered bear market after falling 52% from its peak at 1,848 to its trough at 969, which is the declining 3 folds of its swing movement between 2018-2019 (magnitude “a”). The index has rebound by one-third of the decline and is approaching the next two key resistances: a) 1,245 which is the gap resistance, and b) 1,302 which is 38.2%
Fibonacci level. Hence, we see potential profit taking due to unattractive risk-reward payoff from a technical perspective.
Short-term momentum still looks positive while we see potential higher volatilities as the SET Index is now approaching the resistance zone of 1,245-1,300. For buyers, we recommend investors to set a trailing stop at
1,185. We would advocate sellers to wait for the index to reach 1,300, or for a technical sell signal before making a position.
Support: 1,200 / 1,185
Resistance: 1,245 / 1,302
Sittiporn Jennaimuang

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