Sunday, 16 July 2017

17 Jul 2017 - Late last-minute nibbling.


A narrow price band was seen on 14 Jul, with a 5.55-point range traded between 1,757.24 and 1,751.69. The index inched up by 1.22-points on late last-minute nibbling activities to settle at 1,755.00. 

Supports at 1,736, 1,748 and 1,751 will be weaker for 17 Jul, whilst heavy profit taking at the 1,755, 1,768 and 1,796 resistance areas will cap the index rise. Four of its indicators (CCI, DMI, MACD and Oscillator) have turned very negative. Its Stochastic is positive for now.

Investors will sell on rallies, as the index turned into bearish territory and is below the 18 and 40 SMA since 28 Jun. The FKLI contracts (Jul, Aug, Sep & Dec 2017) turned above par (ranging from a 4.50-points to a 5.00-points premium) against the index on some nibbling activities. 

Despite the US markets' 84.65-points rise for 14 Jul, the index may trade with a downward bias today. Obvious bearish divergence on its ADX, CCI, DMI, MACD, MACD Histogram and Oscillator will cause selling on rallies for the FBMKLCI today. There was a Doji signal appeared on 16 Jun to create some uncertainty at lofty levels (at 1,796.75) for the index. Downside price movements will emerge from this key 1,796.75 peak. The daily Bearish Engulfing pattern on 28 Jun also implies further downside for the index.

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