50-day SMA support for KCLI remains under threat. The KLCI recovered from its 1,505pt low a fortnight back. However, we do not see this as a start of a new uptrend but rather as a rebound from the recent sell-off. At the current juncture, the KLCI could be doing an “a-b-c” correction from the peak in early Jan. If so, the index should see more downleg which will complete the correction. A 5-wave downleg over the next few weeks would, however, paint a different picture, indicating this downtrend could be more than a downtrend. Until that happens, we are assuming that the KLCI is just in a correction. The immediate support is at the 50-day SMA (1,526) and the 200-day SMA is at 1,422. The resistance trendline is currently at 1,552.


FBM KLCI Daily Chart: click to enlarge


fbm-klci-elliot wave

by: CIMB

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