As we are counting down towards the end of Year 2016, let’s not forget the Malaysia stock market has been falling downwards and traded sideways for a period of 4 months. All the dooms and boredom moments over the past 4 months may eventually come to the end with just a short term rebound in the month of December 2016.
U.S Dollar Index
The strengthening of the U.S Dollar ever since President Trump is elected has been a ‘hot topic’. Indeed the U.S Dollar Index remain bullish technically but it will need to go for a healthy price correction in the short term as well. (The market does not move up on a straight line over all). A healthy price correction towards $99.00 will seem possible for the U.S Dollar Index. But it will be great to see a lower lows and lower highs to form on this U.S Dollar Index in the mid term.
As how I’ve mentioned earlier on our past 4 months of dooms and boredom moments, the FBMKLCI has been staying below its EMA200days which is categorized as a Downtrend/Bearish Market. Over the past few weeks the index are trading in a sideways trend. A sideways breakout of 1632 will lead the index to go for a short term rebound. This will eventually improve the market sentiment. Stocks goes for a rebound too. You may need to get back to work to see what are the stocks to dispose/accumulate in your portfolio. After all despite a bearish market, opportunities does still arise but in a smaller scale. Having a good trading plan and staying discipline on it matters a lot. Downside risk to take note on the support line drawn 1614. Target resistant may hit 1664 which is just the EMA200days Resistant.
10 Years Position Equities Trader
Founder of http://www.trendfollowingmalaysia.com
Chief Equities of TFM