Market Outlook as at April 12, 2013

FBMKLCI has broken above the all-time high of 1700 recorded in January. As noted before, FBMKLCI is moving within an expanding triangle (ABCD), with immediate resistance at 1730.


Chart 1: FBMKLCI's daily chart as at April 12, 2013_9.30am (Source: Qucickharts)

From the weekly chart, we can see that FBMKLCI is in a long-term uptrend, SS while its upside for the past 2 years have been capped by the line connecting its peaks, RR. That line is likely to again act as a cap for the current rally by limiting the upside to 1720-1730. A breakout of the 1730 could free the index for a steep trajectory.


Chart 2: FBMKLCI's weekly chart as at April 12, 2013_9.30am (Source: Qucickharts)