KLCI closed 1253.12 points on Wednesday. With the Government removing the subsidy on fuel, the market reacted negatively in Thursday morning trade down more than 37 points or 3.02%.
The index is now sitting at the pivot low of 1216.38 set on 7 Apr 08. If this support cannot hold, the next one will be at 1166.
The indicators do not look good either. The –DI is now above the +DI and ADX is increasing. MACD indicator is also showing bearish signs. The RSI indicator is indicating that the market is approaching oversold level. But if a downtrend develops and the ADX goes above 20, then the market may remain oversold for a longer period of time.