Technical view on KLCI:
The red trend line draw from September 2011 the major defense wall for the index, now had been breached by today closing. KLCI moving further into negative region.
Based on Fibonnaci retracement level, KLCI now in the range between 61.80% and 78.60%. 0% set at 1867, 100% set at 1671.
The black horizontal dotted lines are at 1769 (50.00%), 1746 (61.80%) and 1714 (78.6%).
Immediate resistance for KLCI are 1730 and 1746 (61.8%). Immediate support for KLCI is 1715 and 1672.
At the moment, KLCI breached below the bottom of the wedge and stay inside the broadening downtrend channel.
Currently, MACD below 0 level and flat; while RSI still in oversold region and heading downward.
In addition, today market dropped 12.21 points with the highest volume in 7 trading days.
This was a significant signal showing continuation of bearish after breached below the red trend line.
Re-stay above the red line and breakout from the downtrend channel are critical to neutralize the bear trend.
In short, market might drop 10.0% (1680) to 15.0% (1586) from latest peak 1867 before rebound.
At moment, bear in the ride.
Thank you for your reading.
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