U.S Dow Jones Industrial Average & Malaysia FBMKLCI Daily Outlook: Playing the Sandwich Box?

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The Sandwich Box Play


(Price Correction)

correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.

(Uptrend)

DEFINITION of ‘Uptrend‘ Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.


Previous blog update:

Ongoing market rout is just plunging opportunities out for you. (Malaysia FBMKLCI update)

Malaysia Stock Market: CNY Rally? Historical High on the FBMKLCI?


Dow Jones Industrial Average Sandwich Box

2018Feb-Dow Jones Averages Industrial Average-1000x600

  • Retrace from historical high 26,616pts to lowest 23,778pts a whopping -10.8%!
  • Sandwich Box play at the range of 23,778 low – 25,200 high.
  • The DJIA may consolidate within this Sandwich Box play.
  • A clear breakout above 25,200pts will put the DJIA into rally mode.
  • Certainly a breakdown below 23,778pts will put the DJIA into a longer market correction.

 

FBMKLCI Sandwich Box

2018Feb-FBMKLCI-1000x600

  • Well play within its Sandwich Box at the range of 1,812 low – 1,841 high.
  • 07/02/2018 closing the FBMKLCI hit its high 1,841 and low 1,825 which is still within the Sandwich Box range.
  • Shall the U.S DJIA market recovery continues, the FBMKLCI will have  a high potential to break out of its 1,841 high. That will trigger a rally in the Malaysia Stock Market.
  • Downside risk is still manageable within the Sandwich Box range.

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