Our KLCI has been performing poorly for a very long time, but | Bursa Pilot Group

Our KLCI has been performing poorly for a very long time, but with the appearance of the new #covid variant, this has forced not just our local market, but global markets to crash down.

Taking a look at #DJI, it had fallen below its short term support area of $35519. It is a fresh breakdown, so there is a chance that it will continue to go lower.

There is not much information on the #NewCovidVariant yet, so market will definitely remain weak until it understands the threat that the new variant can bring. The variant was first found in #SouthAfrica and there had been speculations that our current vaccines are not effective against it. That's why all the markets crash down on Friday.

#VIX is an index which represents the market's level of risk, fear or stress; so the index generally moves in the opposite way of DJI. It had been in a sideways from some time, but a huge surge occurred on Friday as it is currently testing to breakout the resistance of $29.

For #KLCI, it still remains to be very weak as it has once again fallen below its support. Next support area would be around 1486, so that is where it could be heading.

Conclusion, market is likely to remain weak until more info regarding the new covid variant is obtained. If its bad news for us, the market will likely crash down lower. If its not as serious as speculated, the markets will likely have a small rebound.

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