KLCI/FKLI and FCPO technical analysis update

FKLI futures broke out from a very strong support level at 1760 directly to an uptrend, but not all is well as we note the 200 day moving average is negative sloping and also 1800-1850 contains pretty difficult resistance.  In order for the market to set up to try and break 1850, simple supports must have held, baby steps, starting with 1770.

Today we seem to have gotten that support level holding with a clear break above 1790 after a test below.  The market is looking like it is on its way to testing 1850.  In my last update, I did state the market is most likely looking to move higher from 1750, but the nature of the rally seems to be a slow large range movement upward based on today's market information.  Movement is still decidedly upward for the short term though.  Ultimately I do expect the market to hit 1850 in the next few months.  Note* Although it may hit 1850, it may not follow through much higher.

FCPO is in a totally different camp.  A move past the 200 day moving average saw prices drop like a rock.  In order for FCPO to have a chance at reaching new yearly highs, the support at RM 2,080 must hold.  A move below that will set the tone for this year as somewhat bearish or ranged and choppy.



So far though, the immediate sentiment is bearish, so careful trading!