NEXT For KLCI ... Index Is Bearish But Penny Stocks To Be In Play !!!

The KLCI failed to move back to above the short term 30 day MA last week. It failed to break above the immediate resistance level at 1880 points and the short term average at 1882 points. This clearly indicates that the market is still bearish in the short term. The long term 200 day MA is at 1840 points. The KLCI is expected to be bearish if it cannot overcome the 1880 point resistance level. The immediate support is at 1860 points.

Momentum indicators like the RSI and Momentum Oscillator stayed below their mid levels, indicating a bearish momentum for the index. Furthermore, the MACD indicator continued to stay below its MA and the index is at the bottom area of the Bollinger Bands indicator. However the bearish momentum is weak as there has been an increase in these indicators in the past one week. Only a fall below the immediate support level could trigger a stronger selling momentum.

For the remaining week, expect a quiet market.

However expect the retail market to be active and penny stocks to be in play. Expecting a sideway trend for the KLCI coming week with a range of between 1870 and 1880 points. A breakout above the 1880 points will push the market back into an uptrend and this can set the KLCI to test the historical highs.