There seems to be no floor for Malaysia’s FBMKLCI since it failed to move back above its 50-day SMA in May.
When will the downtrend end?
The next leg down could potentially reach the 1.618x of the April-May fall first (at 1,712) before a rebound kicks in.
That is also where the 1,706-1,714 support band lies, where the latter is the 78.6%FR of the Dec-May rally.
Longer term, we may see a retest of the 1,671 support while the key long term support at 1,660 needs to hold.
If a rebound does occur from current levels or close to current levels, then look for it to bounce higher to test 1,759 next.
The 1,770-1,780 would also be a tough resistance to crack.
The odds continue to favour lower prices in the short term. (Read Report)
Source : CIMB Research