MALAYSIA FBMKLCI GAINED +62pts after hitting its crucial support 1675. Now that is just a bottom for rebound.
On 16th December, we were on the topic of “Malaysia FBMKLCI Weekly Trend Outlook. Everybody is finding the bottom now.”(Click on the topic to view previous post). The FBMKLCI hit its crucial support at 1675 last week and have since rebounded +62pts as of today. Broad market blue chips especially the Oil & Gas and Banking Stocks are having a good rebound to lift up the index. The broad market stocks are all slowly seen having their own rebound too giving investor/trader to rush back into the market for to capture the ‘Dirt Cheap’ stocks in Malaysia. Let us take a look at FBMKLCI Daily Chart as of today:
A +62pts rebound is just a rebound from its crucial support 1675. Value investor may take this opportunity to accumulate undervalued blue chip stocks during these period. Traders will take this opportunity to capture this rebound for a handsome profits for Christmas celebration. FBMKLCI crucial level of resistant now stands at 1788. A breakout from this resistant and provided being able to sustain over this level of 1788 in the near future, will only then create a new wave of bull market in the Malaysia stock market which will be in the Year of 2015. Failure to sustain above this level will surely lead to a minor correction which is totally healthy for the market. Again this +62pts is just a rebound from its crucial support 1675. Therefore know your purpose of entering the stock market. May the odds be with us.