The KLCI chart formed an inverted hammer on 19 Oct. This pattern is bearish and the black candle on 22 Oct confirms the bearish mood. So where is the support level?
The first support is at 1649 the pivot low made on 15 Oct. The next support will be at the 38.2% Fibonacci retracement level of 1641. If 1641 fails to stop the sell down, the index is likely to test the 61.8% level of 1623
A look at MACD indicator shows that the trend is still bullish. ADX indicator is indicating a sideway trading with value below 20 level indicating that there is no strong trend pattern at the moment. The +DI is still above –DI indicator suggesting that any sell down will be a correction under the current bullish trend.