Market Outlook as at September 20, 2012

FBMKLCI broke its 50-day Exponential Moving Average (EMA) line at 1630 this afternoon. Its next support is likely to be the intermediate uptrend line, SS at 1605. The next support would be the psychological 1600 mark.


Chart 1: FBMKLCI's daily chart as at September 20, 2012_12.00pm (Source: Quickcharts)

If FBMKLCI breaks the psychological 1600 mark, the index may test the 50-week EMA line at 1576. The long-term uptrend line support, S1-S1 is at 1475-1480.


Chart 2: FBMKLCI's weekly chart as at September 20, 2012_12.00pm (Source: Quickcharts)

We will have to wait & see where this correction will terminate. I believe it will probably end at 1600-1605 level before recovery kicks in.