FBM KLCI 18-01-12

My last post about the FBM KLCI is at 09-01-12 last week as i wrote "i will expect the index to retest the immediate resistance 1530". The index go as high as 1526 and retrace from there which is due to more than  half of the European countries credit rating was downgraded by S&P.

S&P Downgrades See Muted Market Response this time. Our index decline 14 points on monday and quickly recover 10.3 points yesterday.

The index is still trading above all moving average and the uptrend is still intact. MACD formed a bearish crossover, RSI is flat and today closed with a doji candlestick indicate that there is some indecisiveness in the market. Therefore, i will expect the index to go sideway according to my analysis and also because of the market will close on next monday and tuesday for celebrating Chinese New Year.

Support can be found at 1500 which is the trend line support coincide with the 20-days and 200-days MA. If it close below 1500 there will be more downside and the next support is at 1480. Resistance is pegged at 1530. If the index able to break above 1530, it will be very likely to retest 1560.