FBMSCAPFTSE Bursa Malaysia Small Cap Index -
Overall Trend :
The index has experienced a strong uptrend from late 2023 into early 2024, with prices consistently making higher highs and higher lows.
However, starting around June 2024, the index began a significant correction, with a noticeable downward movement that broke below the support of the middle Bollinger Band and continued lower.
Bollinger Bands :
The Bollinger Bands indicate increased volatility, especially in recent weeks. The bands have widened, and price action has moved sharply from the upper band to the lower band, suggesting a bearish sentiment.
After touching the lower Bollinger Band, the price experienced a brief bounce, but it remains below the middle band, which could act as resistance.
Recent Candlestick Patterns :
The recent candlesticks show large red bodies, indicating strong selling pressure.
There’s a gap down visible, followed by a small bounce, but the overall pattern suggests that sellers are still in control.
Support and Resistance Levels :
Support: The most recent low around 14,809.16 could act as a strong support level. If the index breaks below this level, it could lead to further downside.
Resistance: The immediate resistance is around the 18,400 to 18,600 level, near the middle Bollinger Band and the recent highs from the minor bounce.
Conclusion :
Bearish Outlook: The index is in a correction phase after a prolonged uptrend. The recent price action, moving averages, and Bollinger Bands suggest that the bearish momentum is still present.
Potential Reversal: A decisive break below the recent support level (around 14,809.16) could signal a continuation of the downtrend. Conversely, a break above the 18,400 to 18,600 resistance level could suggest a recovery.
This analysis suggests caution for long positions, as the bearish momentum appears strong. Monitoring key support and resistance levels will be crucial for identifying potential reversal or continuation patterns.
