MONTHLY TECHNICAL INDICES – KLCI

FTSE Bursa Malaysia Kuala Lumpur Composite Index

Outlook:

Based on the weekly candlestick analysis, a spinning top pattern was spotted on the chart, which indicates indecisive movement ahead. However, the FBMKLCI has traded within the immediate support and resistance levels of 1,477 and 1,550 in the last four weeks. This
movement is supported by negative readings in the DMI and MACD, which suggest that selling momentum still overcame buying momentum. We expect the index to continue the sideways movement from 1,477 to 1,550 in the near term. Violation of either barrier should prolong the upward or downward movement respectively.

Strategy:
Given the uncertainties on the external front, we recommend investors approach the market cautiously. Profit-taking activity may kick in sooner amid the recent gains.
Support: 1,477/ 1,450
Resistance: 1,550 / 1,600

Analyst
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe

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