Market Outlook as at October 3, 2012

FBMKLCI underwent correction after it tested the horizontal resistance at 1650. This correction could send the index to the medium-term uptrend line at 1630 (coinciding with the 20 & 50-day EMA line). If this support can hold up the index, the market would continue its gradual uptrend. If this support failed, the index may retest the psychological 1600 level again. A quick trip to the 1600 mark and a rebound would not invalidate the on-going market recovery. What the index must avoid is a convincing break of the 1600 mark, with follow through selling. 



Chart: FBMKLCI's daily chart as at October 3, 2012_12.00pm (Source: Quickcharts)