HSI, STI & KLCI Monthly Charts

STI Monthly Chart

The FSSTI index is in a downtrend as it is trading far
below the cloud. A bearish conversion and base lines
crossover have confirmed this bearish trend as well.
However, a corrective rebound had been expected, and
we have seen that materialising after the index
rebounded from the low formed in Mar 20, which is also
near its long-term rising trendline that started in 1998. It
is now testing its gap resistance at 2,634. The index has
to penetrate above 2,634 for further rally, but the upside
could be limited as there is an overhead base line
resistance at 2,746. A violation of 2,520 could result in a
test of the low again.
Investors could accumulate when the index penetrates
above the gap resistance at 2,634, and sell on rally when
the index approaches the base line resistance.
Support: 2,525 / 2,380
Resistance: 2,670 / 2,745
Wong Shueh Ting, CFTe

Based on the weekly candlestick analysis, a spinning top
pattern was spotted on the chart that indicates indecisive
movement from hereon. However, the FBMKLCI
movement was still in the range of the immediate support
and resistance levels of 1,320 and 1,430 in the last few
weeks. The recent sharp drop on intense selling
suggests more weakness in the longer term. We expect
a minor bounce from here, but any bounce can be seen
as a chance to sell on strength since the FBMKLCI still in
the bearish mode territory as the index is still below the
Ichimoku cloud.
Due to the potential consolidation ahead, investors and
position traders may wish to remain on the sidelines and
wait for confirmation. If a new higher high is formed,
investors may go long, but if the bullish trend is broken,
investors may turn short.
Support: 1,320 / 1,300
Resistance: 1,430 / 1,460
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe

After the index rebounded from the long-term bullish
trendline (formed since 2008), it has been ranging for few
weeks between 23,484 (overlapped level since Mar 20) and
horizontal resistance at 25,134 (overlapped level since 2018
and around 50% Fibonacci retracement level between Jan
20’s top and Mar 20’s low). The weekly indicators are mixed.
The 20-week (red line) moving average is below the 50-week
(blue line) one and is heading downwards. The daily RSI
lacks momentum. However, the weekly MACD is turning up,
while the MACD histogram is narrowing.
Hence, we are neutral on the index now and expect it to
continue ranging between long-term bullish trendline (formed
since 2008; around 22,700) and next key resistance around
25,134. In addition, the 250-week (purple line) moving
average is also playing a very important resistance role on
the upside. Alternatively, only a break below the long-term
bullish trendline would turn the outlook to negative.
Investors are recommended to accumulate stocks during any
consolidation and can use the long-term bullish trendline
(around 22,700) to control risk.
Support: 23,484 (overlapped level since Mar 20), bullish
trendline since 2008 (around 22,700), 21,139 (previous
Resistance: 25,134 (horizontal key resistance since
2018), 25,668 (250-week moving average; purple line),
26,533 (50-week moving average).
Joyce Chan, CMT

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