FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI IND)
Entering sideways market
Based on the weekly candlestick formation, despite follow through selling pressure, the FBMKLCI has pared down earlier losses as buying interest, potentially from institutional funds, kept absorbing selling pressure as the index remained between 1,535-1,618. The index tried to penetrate the Ichimoku cloud but selling pressure still overcame buying pressure as shown in the negative RSI reading. Moving forward, we expect more sideways movements ahead. However, a failure to surge higher should place the index in consolidation thereafter.
Given the uncertainties on the internal and external fronts, we recommend investors approach the market cautiously.
Profit-taking activity may kick in sooner amid the recent gains.
Support: 1,506/ 1,500
Resistance: 1,618 / 1,640
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe