Market Outlook (June 21st - 25th)

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Current Trend : Recovering from a Downtrend

Support 1 : 1303
Support 2 : 1294

Resistance 1 : 1324
Resistance 2 : 1349

Observation : Despite the slow market due to the World Cup and what not, the FBMKLCI has been performing very well last week. The resistance at 1303-1304 region was broken and for now, it will become the immediate support. On Friday, the index was trying to break through the 50 day Moving Average. If the index is able to stay above the 50 day MA, I believe that we will be in the bull market once again.

However, we need to bear in mind that the most challenging task for FBMKLCI is to break the psychological resistance at 1349. But due to lower volume transacted within this month, I doubt that it will happen so soon. Besides, traders will start taking profit for counters that have been on the rise since last week.

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