At first i wanted to analyze on FBMKLCI. However, due to unable to get data, i just analyze on FKLI which is more or less similar to FBMKLCI in terms of movement reaction.
The lowest data i could get from Bursa Station is from 1998 until now by Monthly chart. If i want to focus more smaller time frame, i could only get short period to analyze which i assume it is not sufficient.
This month, APRIL is going to be crucial month for the market and also our nation. We would see a very volatile market due to GE and pending rally (i would say). Some are very optimistic on the index and some are in cautious mode. Today has provided an opportunity to some investors/traders to grab cheaper price on some counters.. i wish u all the best..
Anyway, just look at the chart. A combination of 2 Gann Angle and 1 Speed Resistance line.
There is indication of 1, 2, 3, 4. These numbers represent the possibilities.
1. This is the resistance area for the index to go up if rally persisted. A bullish up to 1728~1736 would be good enough as we can see a bearish divergence formed on AC indicator. Surely a downtrend is coming soon.
2. When the downtrend comes, the 1st support area would be at ~1589. This is agreed by many people as we know the lowest for recent period was on 28 Nov 2012 at 1590.67 (FBMKLCI). This support is based on speed resistance line.
3. Next support area will be at ~1480.. This is based on 2nd Gann (right side, black color) 2x1 angle. At 1500, it would act as strong support to the market due to number itself (physical support).
4. A possibility for the market to drop as in 2008, is there. Based on the 1st Gann (orange color) 4x1 angle, the support level will be at ~1364..
The figures given here if only happen in April.. However, i doubt our market will react everything on 1month only. Therefore, the level will change based on the month we are in..
Month of IPO will be coming soon or already now..? So, this could hold the market from drowning further. This will be an attraction to investors/traders to stay in the market. What months are they? April & May?
Finally, I would like to wish everybody all the best for the challenging journey start from April until end of Oct perhaps.
*p/s: this is just my personal opinions. Don't cloud your judgement based on my "junk" analysis.. =)
Happy Trading..