FBM KLCI – Range bound between 1,474.02 and 1,531.99 till year-end.
FBM KLCI Weekly Chart
Support: 1,474 to 1,495
Resistance: 1,499 to 1,531
The FBM KLCI lost 7.40-points and closed at 1,499.28 last week, as some profit taking
activities on plantation and finance stocks trimmed the market’s initial advance. The global markets remained very quiet ahead of the Christmas and New Year holidays. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,495-zone.
The key resistance areas of 1,499 and 1,531 may cap any rebound activity. Since the current rise of the KLCI was a “Flat”, investors should not get caught at the end of this rebound move. Bearish divergence signals are obvious on the FBM KLCI’s indicators.
As a result of the weekly Bearish Engulfing Candle top on 10 November 2010 at 1,531.99, we will see an uncertain corrective phase for the FBM KLCI for the next few weeks.
We foresee an extended consolidation period for the index, which would be clearer on a break below the support of 1,474 or above the resistance of 1,531.