A level of important price resistant for price to surpass and also a level of important price support to maintain above. Price trading above the RALLY POINT will mean more upside price action ahead.
A zone where price is deemed WEAK in the short term period. Only progressive rebound can be seen trading in the short term. But failing to SURPASS the RALLY POINT will only put the price into a longer term of downtrend price action.
The Hourly Chart
The Hour Chart, depicts the hourly price movement on the FBMKLCI. The index falls into a Downtrend Price Rally since 18th May 2018. Price trending lower with each rebound failed at its EMA200Hours Resistant.
Keeping the “Temporary Support”at 1,673pts, any rebound ahead will be seen trading near to 1,708 and 1,760 respectively. This does not mean the index is back on track to a trend reversal as only when it is evidently proven when the index stays above 1,760 in the short to mid term then only a trend reversal into a Uptrend Price Rally can be seen.
Once again like how we mentioned in our TFM Eagle Eye Newsletter Issue #289, index performance does not guarantee the performance of your stocks. The Small caps and Penny stocks started their market correction earlier than the FBMKLCI on January 2018 on wards compared to the FBMKLCI on May 2018. Henceforth small caps and penny stocks have limited downward movement but rather been trading consolidated. Start looking out for these stocks as an opportunity.
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Stocks ignoring the FBMKLCI slide
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