Chartwise, FBMKLCI broke above the intermediate downtrend line, RR at 1720. This breakout signals a possible end of the current downtrend. The index could potentially rally to test the horizontal lines at
Looking back, I must say that the potential for a rebound was foretold by the twin divergence in shown by MACD & Slow Stochastic. I hope that the recovery will continue to broaden out. The damage to the broader market has been severe and that will take time to recover. Can this happen with the tumultuous development in Greece and the volatility in Shanghai? Let's wait & see.
Chart: FBMKLCI's daily chart as at July 1, 2015_10.15am (Source: ShareInvestor.com)
2 comments:
Many put warrants showed a bearish engulfing with heavy volume yesterday when KLCI only rose 14 points. That was also an early indication that a reversal is coming.
Hi JY
There were many confirmed reversal among the put warrants of FBMKLCI. This should be at least a temporary bottom for the market. For the next few days, we can expect a slow climb to 1765-1780.
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