Our market has entered into a correction, with FBM-KLCI pulling back towards the 10-day SMA line at 1546. If this line is violated, the next support would be the 20-day SMA line at 1535. This is the most severe correction since the market recovered from its 3 months' consolidation (from January to March). In that recovery, the FBM-KLCI rallied from a low of 1476 on March 15 to hit a high of 1565 on April 4. If the current correction leads to a retracement of 38% of the recent gain of 89 points, then the FBM-KLCI may decline to 1531. That's quite close to the 20-day SMA line. I think the 1530-1535 level would be the likely downside limit for the current correction.
Chart: FBM-KLCI's daily chart as at April 11, 2011_10.00am (Source: Quickcharts)
1 comment:
Hi Alex,
Would you please explain what will happen to jerneh wa price after the announcement of the diveden pay out?
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