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.

Malaysia FBMKLCI


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.


William Au

10 Years Position Equities Trader

Founder of http://www.trendfollowingmalaysia.com

Chief Equities of TFM