The KLCI had been moving tightly for the whole trading day, setting a tiny and tight candle to churn the sharp decline below the huge gap, R=1,730~1,740. This gap is a control point to measure the strength of the bear. Right now, the bearish strength is still considered to be very strong. Once, there was a chance for a rebound for today because it seemed to bounce from the trendline and the fear of the global market was eased. However, it had failed. This phenomenon is interpreted our market sentiment is still very weak.
(A) Technical Indicator:
1. Stochastic: (Still bearish)
Spending the 3rd day in the bearish territory (Oversold) as it was sent down since last week. The basic objective for this decline is achieved. However, there's any sign for a technical rebound unless it can leave the bearish territory later.
2. Bollinger Band: (Still bearish)
No signal is triggered today but it retains the bearishness induced by hbpc(A reliable bearish reversal signal) on last week and rti(A bearish reinforcement signal) on yesterday. As the band further expands, it implied the decline is still dominating, the tight movement today is yet to be considered as a technical rebound.
(B) Conclusion:
The short term decline since h=1801 is still intact. The support shall be the down trendline at 1,700 together with the psychological support level and the long term up trendline in weekly chart. Although the decline is very sharp, but it hasn't distorted the long term bullish view.
Confidence Level: 80
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