Malaysia Stock Market Muted After Breaking Down It’s Critical Support. How low is low now?


On October 02 2017, we posted on (Click on title below)

Just so you know, this is where the Malaysia stock market stands now. CRITICAL! [October Year 2017 Market Outlook]


This is the aftermath!

2017Nov-FBMKLCI-1300x600.png daily (3)

The FBMKLCI broke down below its 1743 pts critical support level at it’s EMA200days support. Ever since then it has been moving sideways to lower lows reaching close to February 2017 level. WHILE the global equities market have been riding on new highs recently with their raging bull mode, the MALAYSIA stock market has rather chosen a road that is less traveled by. 

How low is low now?

2017Nov-FBMKLCI-1300x600 (2)

As eventually the Malaysia stock market need to come back on to it’s right track, let us take a look at this market bigger picture using the weekly chart of FBMKLCI. 

Year 2011 – EU Debt Crisis had brought the index down from 1,597 to 1,310 pts supported at its weekly EMA200weeks.

Year 2012/13/14 – Bull Market Rallies

Year 2015 – Crude Oil Crisis had brought the index down from 1,867 to 1,500 pts breaking down support at its weekly EMA200weeks 1, 700 pts. 

Year 2016 – Bearish to sideways market 

Year 2017 – The index broke up of its weekly EMA200weeks 1,685 and rallied towards 1,796 highest on May 2017. 

Year 2017 – 2018 – Since June 2017, the index has been in a big cycle of correction up till today closing at 1,719 pts. 

TECHNICALLY the weekly EMA200weeks support is at 1,700 pts. The FBMKLCI is nearing to this support and shall the bull has realized it’s pathway, the Malaysia Stock Market will start to make a big turnaround from this point on wards. Henceforth investor/trader shall take note on this point on wards and may have a list of potential sector of stocks in their watch list. 

But of course on the clear cut downside risk, a breach below this level of weekly EMA200weeks will literally bring in further downfall on the Malaysia stocks over the next few months.