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

درس-دوم.بازاریابی

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. 

t6

trendfollowingmalaysia Home, Trend Following Malaysia: Equities

“Bull Market” is just a MYTH!

bull-918893_1920_1

There is a saying;

1) People still make losses in a Bull Market.

2) People still make losses in a Sideways Market.

3) People still make losses in a Bear Market.

It is rather what you did in each of these market scenario that matters in your portfolio!

 

 

This is how the Singapore Stock Market looks like

2017jan-straits-times-1300x600

  1. Year 2015 the STI (Straits Time Index) had fallen into a BEAR MARKET below its EMA200days.
  2. The index had moved lower lows lower highs throughout the year.
  3. Year 2016 the STI started off the year with a rebound towards its EMA200days.
  4. The index had moved sideways throughout the year.
  5. Towards the end of Year 2016, the STI moved from 2,761pts – 2,980pts (+7.9%) breaking out of its EMA200days before going into a market correction.
  6. The STI  supported at its EMA200days and rebounded  from 2,657pts – 3,025pts (+5.8%) in the month of January 2017.

Back then in Year 2015, despite being in a Bear Market there will still be selected stocks or selected sectors with opportunities. Likewise to Year 2016 being in a Sideways Market there will still be selected stocks or selected sectors with opportunities.

NOW with the STI being above its EMA200days creating higher highs and higher lows, in a Bull Market there will be much more opportunities for you to make profits. But of course losses will be an inevitable part of your portfolio as well. Hence pick the right sector of stocks and always have a trading plan for it. Bull Market is just a myth! But staying DISCIPLINED on your trading plan is an art of practice!

This is how the Malaysia Stock Market looks like

2017jan-fbmklci-1300x600

  1. Year 2015 the FBMKLCI had fallen into a BEAR MARKET below its EMA200days.
  2. The index had moved lower lows lower highs throughout the year till the month of August.
  3. Year 2015 August the index rebounded towards its EMA200days before fallen into a market correction.
  4. Moving into Year 2016 the index had been moving in a Sideways Market failing to break nor maintain above its EMA200days throughout the year.
  5. Towards the end of Year 2016 the index started to rebound from 1,616pts – 1,682pts (+4%) into Year 2017 January breaking above its EMA200days.

Back then in Year 2015, despite being in a Bear Market there will still be selected stocks or selected sectors with opportunities. Likewise to Year 2016 being in a Sideways Market there will still be selected stocks or selected sectors with opportunities.

NOW with the FBMKLCI recent rebound breaking out of its EMA200days followed by the market correction, will the index gets supported above its EMA200days? Over the next 5 days so long the index is able to rebound back above 1,660pts (EMA200days), it will be pretty beautiful to see the Malaysia Stock Market to mirror the performance of the Singapore Stock Market. And of course as a Bull Market emerges, there will be much more opportunities for you to make profits. But of course losses will be an inevitable part of your portfolio as well. Hence pick the right sector of stocks and always have a trading plan for it. Bull Market is just a myth! But staying DISCIPLINED on your trading plan is an art of practice!

[If you wish to know]

How does EMA200days Works?

https://trendfollowingmalaysia.com/2015/06/18/how-does-ema200-days-works/ (Click link)

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These Metal, Steel, & Aluminium Stocks are flexing up to new highs!

https://trendfollowingmalaysia.com/2017/01/13/these-metal-steel-aluminium-stocks-are-flexing-up-to-new-highs/ (Click link)