MONTHLY TECHNICAL INDICES – KLCI

FTSE Bursa Malaysia Kuala Lumpur Composite Index

Outlook:
The FMBKLCI continues to form lower highs and lower lows that indicate a downtrend. The index penetrated the uptrend line over the last few weeks closed at 1,516.28 on 7 Sep 20. This is supported by a downtick in the RSI and a bearish crossover in the MACD. Currently, the DMI
is on the verge of making a dead cross to the negative signal that shows selling momentum is starting to overcome buying momentum. We expect the FBMKLCI to retest the psychological resistance of 1,500 in the near term. The recent sharp drop on intense selling suggests
more weakness in the longer term. But overall, we expect the index to trade sideways, based on recent weeks’ movements.
Strategy:
Since the index is now in bearish mode, we suggest
investors to wait at the sidelines and buy on dips.
Support: 1,477/ 1,445
Resistance: 1,576 / 1,600
Analyst
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe

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