KL Composite Index: Bulls are gaining the edge over the bears

The KLCI did test the 1,300 points resistance level as expected and the upward rally’s momentum seems to building up. The Relative Strength Index indicator (RSI) has gone above the half-mark level which indicates that the bulls are gaining the edge over the bears. Although the short term trend is up, the longer term trend is still down.

The KLCI is below the long term 90-day moving average and this average, together with its mid-term 60-day average is still declining. The KLCI is currently at 1,288.08 points.The KLCI is expected to climb higher with this kind of momentum, but may face resistance at 1,320 points , if based on a Fibonacci extension from the rally that started on 11th of March this year. The immediate support is currently at 1,260 points. By Benny Lee