KLCI : 1,686 (-15)
Our KLCI is whacked frenziedly again in the morning but it bounced from 1660 consistently, setting a broad star candle. 1660 is likely to serve as a temporary trough in a decline because
1. The first significant buying since the consistent decline from 1801.
2. Expanding volume
3. Support 1650 (as referred to weekly chart) is reached roughly.
Critical Levels:
Support Level : 1650(weekly), 1660(recent low)
Resistance Level : 1700(gap resistance)
Technical Indicators:
1. Stochastic : Still bearish
(a) Little tick up since it had been moving horizontally for about a week.
(b) It implied the chance for a bounce is high
2. Bollinger Band : No signal
Conclusion:
The situation becomes critical because the chance for a technical rebound to happen here is increased. However, this rebound is not going to distort the mid term bearish view. LONG establishment is discouraged. Practically, SHORT shall be further held nimbly.
Confidence Level: 50%
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