Comments are welcomed. There is no single right or wrong answer about your view.
My personal view (purely personal & strictly a wild guess) is that something may come up in the month of August, which is traditionally a relatively “bearish” month.
Today is the last day of June 2017. As per the above technical chart of FBMKLCI (as of 29 June 2017), there are few interesting observations that one should be aware of:
- FBMKLCI is trading closer to the 50D simple moving average line. If FBMKLCI index crosses below this support line, there is high likelihood that a downward bias may appear;
- The index is still trading on a higher high, higher low basis. Nevertheless, a drop below the level of 1,728 points will increase probability of a downward bias;
- Volume has been moderating, may point towards a weakening upward trend (and potentially a reversal in the trend);
- MACD line has trended below that of Signal Line;
- RSI has fallen below 50 (lacking of positive momentum); and
- Multiple sell signals are appearing in Williams R indicatior.
To sum up, there is a likelihood that the uptrend may be losing momentum and whether it will reverse its trend, this will depend on the price action of the index. It is crucial for FBMKLCI to maintain above 50D MA and 1,728 points in order to sustain its upward trajectory.
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