FTSE Bursa Malaysia Small Cap Index - [FBMSCAP]
Overall Trend :
Bollinger Bands :
Recent Candlestick Patterns :
Support and Resistance Levels :
Conclusion :
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.
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.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.