Sunday, 18 June 2017

19 Jun 2017 - An uncertain Doji signal at lofty levels.

A wider price band was seen on 16 Jun, with a 8.91-point range traded between 1,796.75 and 1,787.84. The index inched up 1.30-points on some nibbling activities to settle at 1,791.31. 

Supports at 1,776, 1,781 and 1,787 may be obvious for 19 Jun, whilst clear profit taking at the 1,791, 1,795 and 1,808 resistance areas may cap the index rise. Five indicators (CCI, DMI, MACD, Stochastic and Oscillator) we monitor are positive, signalling that a further medium-term price rise may be possible (as the index held above 1,651.45). 

Investors may nibble on weakness, as the index turned into positive territory and above the 18 and 40 SMA on 2 Jun. The FKLI contracts (Jun, Jul, Sep & Dec 2017) turned above par (ranging from a 3.69-point to a 7.19-points premium) against the index on buying activities. 

Due to the US markets' marginally firmer tone of 24.38-points for 16 Jun, the index may trade with a minor upward bias today. Obvious bearish divergence on its ADX, CCI, DMI, MACD, MACD Histogram and Oscillator may cause profit-taking on rallies for the FBMKLCI today. The index had recently bottomed out at 1,759.73 on 1 Jun 2017, with lower volumes traded. However, a Doji signal appeared on 16 Jun to create some uncertainty at lofty levels for the index.

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