The Malaysia FBMKLCI suffered a 2 days of heavy price correction after failing to break above its historical high resistant (1826pts). However the long term uptrend on the FBMKLCI remains intact as it has yet to violate its 2 major support to conclude this market as a downtrend market. Tomorrow we will see the FBMKLCI testing its 1st major support EMA90days moving average (1775pts). A good recovery from the 1st major support will end this correction early and the FBMKLCI will retest its historical high resistant. Failure to support at the 1st major support (1775pts) will highly bring the FBMKLCI to close its September gap at (1747pts) which is also the 2nd major and most critical support for the market to support at. *An uptrend does not move in a straight line. It consist of ups (rally) and downs (correction) within the period of uptrend.* While the FBMKLCI continues its healthy market correction the 2nd liner small caps stocks and penny stocks will be affected as well with profit taking activities. But we remain bullish on the 2nd liner small caps stocks and selected penny stocks after this healthy market correction ends. Therefore know where their support is at during the market correction.
Majority of the small caps stocks are undergoing a price correction now. “Plan your trade. Trade your plan.” by knowing when to lock your profits. “Cut Losses” on stocks that has violated their trend support to avoid getting your capital stuck. Below are just a few of the stocks that we would like to share based on ‘Trend Following’. Trade wisely and act wisely!
(Position Trader & Financial Speaker)