FBMKLCI Futures - New Upcycle?

Price has likely entered into a new cycle, within a longer term uptrend. We believe long term trend have yet to turn down as:

1) FKLI yet to chart lower low since May, it is not even below Oct low of 1470

2) Still above its 20 week moving average (chart 3) and above medium term trendline (chart 2)

3) Yet to make significant bottom since May

At the same time, price maybe into the 9th day of new cycle with bottom at Dec 20 as:

1) 20 Dec bottom is 59 days after Sep bottom, slightly above 2x prior cycle;

2) 20 Dec bottom found support right at 6 month uptrendline; and

3) 21 day moving average starts moving higher.

Nonetheless, the 1530 resistance has yet to broken convincingly. Therefore it needs to be broken to confirm the new up-cycle. Do note too, further positive signs are evident. The first is sentiment been overwhelmingly positive in the past 2 weeks while Ringgit strengthened further which usually coincide with stronger KLCI. Also, in 08 FKLI closed above 1450 for only 2 weeks whereas it has been above the level for 15 weeks now while the midcaps continue to print higher close.

So if all come into play, price should close above 08 intraday high of 1536 soon and further 10 days of upward movement is possible. It be great to if breadth confirm the move. But a close below 1485 and definitely below 1470 should see increase in selling pressure.

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