FBM KLCI 09-01-12

The FBM KLCI ended the 1st week of 2012 down 16.60 points and this pullback is expected as i mentioned before in my previous post (FBM KLCI 03-01-12) to found support between 1490 (20-days MA) - 1502 (200-days MA).

The index kick off the 2nd week of 2012 1st trading day with a bullish white candlestick after it found support at 1502 last week. Trend indicator 20-days MA continue sloping upward and price is trading above all moving average indicated the index is still trading in an uptrend. Stochastic formed a bullish crossover and RSI is also sloping upward indicate the trend is likely to continue. Therefore, i will expect the index to retest the immediate resistance 1530, if it able to break above and refill the previous gap (1539) the next resistance will be at 1560. Immediate support can be found at 1502 (200-days MA) and the next support is pegged at 1490 which is the trend line support coincide with 20-days MA.

I have divided the FBM KLCI chart into 3 part which is 2011 high 1597, 2011 low 1310 and an average 1450 (red line). If the price is able to trading above the Red line i will consider it as bullish or otherwise.