Do Bears Need to Give Way? – FKLI 100519

Just a quick recap of what had happened last week, especially last Friday. The band for the cash that we had been tracking thus far (1303 – 1308) has been successfully being taken out on the eleventh-hour and the cash closed even 5 points higher after the pre-matching phase. This broke through will indicate the short-term bullishness of the market as per mentioned previously.

The next question that most of us will ask is "Whether this upside trading will continue for the time being?" In our opinion, the chances are higher although the cash has been unsuccessfully taken out the 1350 level after three attempts. However, with the help of the world market, at the moment, the FBMKLCI is expected to resume its slight uptrend with the immediate resistance only seen at 1330 level albeit at a slower pace after recent two consecutive weeks of upside trading.

For short term, we will temporary change our bearish call to neutral until the end of the month but we will maintain our bearish call towards the mid to long-term call on the market. We perceive this round of rebound as technical rebound and the chances for it to break through the 1350 level are slim. Investors can take a quick and temporary long position and look to take profit above the 1330 level. This will not be a good level to initiate short position in view of the current unstoppable uptrend.
For today, the support is seen at 1315 – 1310 levels and the resistance is seen at 1325 – 1328 levels.


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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.