FBMKLCI
What is the Downside “Target”?
The FBMKLCI closed exactly at the important support level yesterday (Fibonacci 23.6% level – 1463 level), will this level able to be supported? I will not speculate on the answer, however, I can say that the downside risk is definitely increasing as the index seems to create another lower high (1).
Immediate support is seen at 1463 level, followed by 1450 level. Failure for the 1450 level to be held may cause the index to drop towards the 1423 level. The resistance is seen at 1474 level, followed by 1489 level.
Dow Jones was closed yesterday in tandem with the celebration of Labor Day, I shall cover Dow in tomorrow report as it is worth to have a look at this juncture.
Explanation:
(1) Lower high: The high is getting lower in a downtrend. Please refer to the below chart for a clearer understanding.
FKLI
Time to Scale Down and Take Profit?
The answer for the above question is “No”! Why? The reason is simple – I yet to see any turning signal of the current market trend. The futures remains in the trading range of 1467 – 1427 levels. Investors can hold on to your short position with the immediate support is seen at 1450 level, followed by the 1427 level. The immediate resistance is seen at 1467 level, followed by 1480 level.
FCPO
Be Patient…
The FCPO gave back its profit gained during the day and closed below the trendline that I am looking at. This left us with no choice but to wait for another day. Not much to cover as the trading range remains tight and the technical landscape does not change from my weekly market outlook. Please refer to my weekly report published yesterday for detail.
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