Another week passes by, there are some interesting candlesticks and indicators just appeared recently. Last Tuesday (21.04.2015) the FMBKLCI moving in an outstanding ways breaking the resistance level of 1,858 point in tandem with the Dow Jones up about 200 point on Monday night.
At that time the sentiment look so strong which I'm expecting it will be a continuation trend moving forward but when the opening bell started the next day 22.04.2015 (Wednesday), things look a bit different with the sentiment all the sudden turn dull and showing sign of weaknesses (bearish).
On Wednesday closing, the FBMKLCI candlestick closed with a DARK CLOUD pattern. It appear that the index is already reaching its top but it didn't mean that it was a trend reversal but on Thursday (23.04.2015) the FBMKLCI candlestick appear again with a second bearish confirmation of SHOOTING STAR pattern.
Both of these candlestick patterns argue very well that the FBMKLCI are at the top or maybe near the end of the trend. At these moments a careful approach and trade still need to be implemented in order to secure our initial trading. With MACD crossover and MACD histogram appear weaker, the FBMKLCI might be adjusting its trend more to the downside.
Next supporting level will be 1,836 point. If this level been taken out, the FBMKLCI will turn ugly in near term. Just be careful with our trade.
The month of May is nearing; maybe it is about time for the world equities market to take a breath after the long run.