Genting Weakness Ahead

The chart for Genting is indicating weakness in the short term. This is in line with bearish conditions for the past few weeks.

The MACD indicator has just cut below its signal line, indicating that the bears are gaining the upper hand.

The price has pulled back towards its 50 day moving average and this will be a critical level to watch. If the price is not able to hold onto the 50 day moving average, bears may increase their selling pressure and it will violate the up sloping trend line that began in the month of Mar.

Any rebound will meet with selling pressure at RM7.06

KLCI Update

KLCI has been holding well even though Europe has caused stock markets world wide to embark on a correction mode.

The index is facing resistance at 1350 level. It has tested this level 3 times for the past 1.5 months and has not been able to break through.

The –DI is now above +DI indicating weakness in the price action. However with ADX below 20 levels, there is no sign of a strong downtrend developing.

MACD indicator is just slightly below its signal line which is a bearish signal.

Gathering the evidences painted by the charts, index looks set to weaken next week. However possibility of a strong downtrend developing is still not present. The next support level is around 1310