Wednesday, March 13, 2013

Market Outlook as at March 13, 2013

The market dropped about 10 points in early trading (up to 11:30am). This means that the index is now testing its 10-day EMA line at 1646. See the daily chart, Chart 1 below.


Chart 1: FBMKLCI's daily chart as at Mar 13, 2013_11.15am (Source: Quickcharts)

If we look at the 120-minute intra-day chart (Chart 2), we can see that the index is now approaching the 50-period EMA line at 1643. This EMA line should provide support to halt the decline. A break below this line would be very negative and lead to further downside.


Chart 1: FBMKLCI's 120-min intra-day chart as at Mar 13, 2013_11.30am (Source: Quickcharts)

Based on the above, I believe we should see the market rebound from 1643-1646 today.  
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4 comments:

  1. IvanFriday, March 15, 2013 10:08:00 AM

    Hi Alex,

    What is the support and resistance level for KLCI, as GE is very near the corner?

    ReplyDelete
  2. IvanFriday, March 15, 2013 10:08:00 AM

    What is the support and resistance level for KLCI, as GE is very near the corner?

    ReplyDelete
  3. Alex LuFriday, March 15, 2013 5:14:00 PM

    Hi Ivan,

    The next support for FBMKLCI is at 1622. That is not a strong support. the strong support is at 1600.

    ReplyDelete
  4. IvanFriday, March 15, 2013 5:15:00 PM

    Thanks for your prompt reply.
    CI fall down sharply end of day (Friday) today.

    GE risk is increase in market.

    1600 - seem may broke easily. ..unless gov control 80% shares in mkt. .

    What will be the next support if 1600 can sustain?

    ReplyDelete