LT support giving way?
Bursa Malaysia's Finance Index (KLFIN) is currently trading marginally below its key LT support trend line that began from the 1998 lows.
If KLFIN stays at current levels at today’s close, then we may have a significant breakdown of a key support and this can only mean that a lot more weakness is looming.
Besides, it would also confirm the breakdown of its MT bearish flag pattern that has a target of 10,000-10,600 next.
Falling below 13,774 would boost the negative view while a close below 13,463 would confirm that the next leg down is underway, targeting 11,910-12,000 next, where the former is the 2011 low.
If KLFIN can close above 14,220-14,260 either at the end of today or within the next couple of weeks, then the downward movement could be suspended for another month or so.
The rebound, if it takes place, could potentially take prices up to 14,784-15,000 next before the next leg down takes place.
Only a big rally above the downtrend channel resistance at 15,600 and 16,835 would suggests that the LT uptrend has resumed
. For now, KLFIN could potentially see a big move and it is likely to the downside. Buyers beware! (Read Report)
Source : CIMB Research
Labels: Technical Analysis