KLCI Index - 50pts Plunge from 1,720-1,660 Warrants a Rebound
Price hindered by 1.720 level - lower band of the initial predicted 1,720-1,750 Resistance Region.
- Probably due to the Fed's Oct 28th decision of keeping the rate unchanged --> Bearish to export-oriented Asian countries.
- Price has since plunged a hefty 3% or 50pts, from 1,720 to recent low of 1,660.
- There are both psychological (50pts plunge), & technical (bullish divergence, S&R zone) reasons that points to impending bullishness over the next 1-2 weeks.
Observations:
(1) Bullish Price-Momentum Divergence at latest pivot low around 1,660
(2) Increased potential of another upleg to RETEST the more significant 1,740-1,750 resistance upper band.
(3) Expect a reclaim of the 1,720 level, then further rally towards 1,740-1,750 upper band (shaded zone).
- Probably due to the Fed's Oct 28th decision of keeping the rate unchanged --> Bearish to export-oriented Asian countries.
- Price has since plunged a hefty 3% or 50pts, from 1,720 to recent low of 1,660.
- There are both psychological (50pts plunge), & technical (bullish divergence, S&R zone) reasons that points to impending bullishness over the next 1-2 weeks.
Observations:
(1) Bullish Price-Momentum Divergence at latest pivot low around 1,660
(2) Increased potential of another upleg to RETEST the more significant 1,740-1,750 resistance upper band.
(3) Expect a reclaim of the 1,720 level, then further rally towards 1,740-1,750 upper band (shaded zone).
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