For week ending 8 October 2017, it appears that FBMKLCI manages to hold up at its support level of 1,752 and more importantly, it is still above its 200D MA.
A streak of losses in preceding week / earlier part of the week has resulted in bargain hunting in later part of this week. This had contributed towards positive rebound, as FBMKLCI closed higher than its 8D EMA with a relatively higher trading volume. Stochastic clearly shows an oversold position.
What could possibly happen next?
Scenario 1: Uptrend
Ideally, the following has to happen:
- The index trades above the other MAs and EMAs;
- The index is able to break resistance point at 1,793; and
- All MAs and EMAs are sloping upward
Scenario 2: Downtrend
- The index trades below support level of 1,752;
- 50D MA breaks below 200D MA; and
- All MAs and EMAs are sloping downward.
Scenario 3: Range Bound
- The index continues to trade in range of between 1,752 and 1,793;
- All MAs and EMAs will flatten; and
- Trading volume will be low.
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