The recent sell down of the KLCI component stocks since mid September has some damage to the technical chart of KLCI. Let's take a look:
Daily Chart
There was a violation of the 6 month Double Top chart pattern at 1750 on 17/10/2017. Currently, we are waiting for a confirmation which is a retracement below 1750 level.
Trend Line
It has also violated the one year trend line at 1768 on 28/9/2017.
Moving Averages
At 1736, it is currently below the 20day, 50day, 100day and the 200 day MAs.
GMMA
The red GMMA lines have crossed below the green lines. The red lines are facing down while the green lines are horizontal indicating short term speculators are selling while the long term investors are still holding.
The violation of the double top if confirmed the next target would be 1710.
The Monthly Chart
In terms of the monthly chart, we can see the long term bullish trend is still intact. Hence, it would be crucial for the KLCI to hold at above 1730 for now.
http://paulineseconomicsforum.blogspot.my/2017/10/technical-view-on-klci-as-at-oct-24-2017.html
