A level of important trend formation when once formed tend to persist until evidently proven reversed. A bullish trend allows price to move higher highs and higher lows over a long period of time.
A level of important trend formation when once formed tend to persist until evidently proved reversed. A bearish trend allows price to move lower highs and lower lows over a long period of time.
FBMKLCI in the month of November 2018 maintains in a Bearish Downtrend formed since October 2018. For the past 2 months the index has been consolidating in a sideways manner hovering near to its Year 2018 low 1,657 but YET to break down that level. On each technical rebound that occur on the index it failed at its (blue line) resistant and retrace back down. As of today the index is once again at its (blue line) resistant. A failure to breakout from this level and maintain above this level will put the index to retrace back down into its consolidation mode. But however as the market sentiment improves globally, a break out from this level will put the technical rebound on the index to hit 1,730 in the near term. Stocks will find chances on this technical rebound to follow on a rebound too. Hence short term trading activities on trading the rebound may pick up when the index breaks out of its (blue line) level.
The FBMKLCI long term Bullish Zone remains at 1,777pts a level we marked on since early this year 2018. Start hunting for beaten down stocks that are going to present great opportunities to you. Avoid chasing a rallied stocks that can be seen daily.
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