As I promise in my previous post last week
FBM KLCI 09-02-12 once I spotted the confirmation of the correction I will update my post, I got it TODAY !!!
Today our FBM KLCI closed at 1561.3 declined 4.75 points and is the fifth trading days closing above 1560 level. Yesterday the index closed with a hanging man candlestick formation which indicate a potential of reversal and confirmed by today black candlestick for this reversal.
The index continue trading in an uptrend and above all moving average. However, upward momentum is weakening due to the divergence were spotted in MACD histogram, Stochastic and RSI. MACD Histogram formed a 2nd red bar, Stochastic formed a bearish crossover and is in overbought region, RSI also indicate the index is overbought and is sloping downward. According to the candlestick pattern and all my indicator, I'm expecting a correction before the index to go higher. As such, immediate support can be found between 1530 - 1540. Immediate resistance is at 1566 and next level at 1580. If the FBM KLCI closed above 1566 then it is likely to re-test 1580 resistance.
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