The FSSTI index is in a bearish trend as it is trading below the cloud. However, it is currently in a correction mode, rebounding from the base low at 2,208. The FSSTI index just broke out from a continuation pattern of
the pennant chart pattern, and we are likely to see the index continuing its rebound towards the chart pattern target of 2,960 (which also coincides with the gap resistance). The RSI is rising above its neutral level and
there is a bullish MACD crossover. Both momentum indicators could suggest potential upside in the near term.
Investors could sell on rally towards the chart pattern
target at 2,960 as the overall trend is still bearish.
Support: 2,750 / 2,490
Resistance: 2,960 / 3,090
Wong Shueh Ting, CFTe
The index has rebounded from the long-term bullish trendline (formed since 2008) again and has broken above its previous top at 24,855. The weekly RSI is heading upwards and is challenging its neutral level at 50%. The weekly MACD has just crossed above its signal line, indicating that the Hang Seng Index is likely to see further upside in the medium term.
However, the index is now very close to its 250-week moving average (purple line) which had been tested eight times since 2018 before the HSI broke downward in 2020. In addition, the 26,000 level (around the neckline of a former head-and-shoulder pattern) is another resistance level. Based on these, we are neutral but tend to positive. We expect the index to range between support at 23,484 and resistance at 26,000 in the coming weeks. Only a break below the long-term bullish trendline (around 22,519) would turn the outlook to negative.
Investors are recommended to accumulate stocks during any
consolidation and use the long-term bullish trendline (since 2008)
to control risk.
Support: 23,484 (overlapped level since Mar 20); bullish trendline
since 2008 (around 22,519); 21,139 (Mar 20 low)
Resistance: 25,679 (250-week moving average; purple line),
26,000 (around neckline of head-and-shoulder pattern).
Joyce Chan, CMT
Based on the weekly Ichimoku chart, the FBMKLCI is still trading below the cloud, which indicates a bearish trend. In the short to medium term, the index has started to form higher highs and higher lows, and penetrated the
downtrend line to close higher at 1,556.33 last Friday. This is because most of the volumes traded came from retail players who entered the market during the MCO period. The RSI is currently above the 50 line, with bullish crossovers in both the MACD and DMI. Moving forward, we expect the index to continue in its bullish momentum if it penetrates above the Ichimoku cloud and remains above the psychological 1,600 level
Traders can ride the trend with a short-term target at the
1,600 psychological level, but if the short-term uptrend
line is broken, investors may turn short. As such,
investors should approach the market cautiously for now.
Support: 1,500/ 1,555
Resistance: 1,430 / 1,460
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe