The Malnutrition Malaysia Stock Market. FBMKLCI heading to 1,600?

[Bullish Trend]

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.

[Bearish Trend]

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.


bullbear_paint

Malnutrition Stock Market

FTSE klci

The FBMKLCI broke down its 1,657 low which is Year 2018 low earlier this week before rebounded back up above this level. The past 2 days of index rebound had shown nothing significant changes towards the KLSE market. Stocks are as boring as usual. Technically the FBMKLCI remain in a Bearish Downtrend since October 2018 and still remain in a bearish downtrend in the month of December 2018. The FBMKLCI 2 days rebound ended when it technically hit its resistant (blue line) and retrace from there on wards. A close below 1,657 level will be interesting to the bear market players. Or else it will just be another game of consolidation until year end with no significant movement.

What do Bear Market Players Trade On to Make Profits?

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Malaysia Stock Market Outlook Year 2018: Off to a great start!

Correction_bear_cartoon_01.26.2017

Greetings fellow readers!

After 6 months of undergoing a big market correction, the Malaysia stock market has finally made its way back on track, tracing the global market performance. Have you been riding on this bull market after the long wait?

From our previous post, we mentioned on how low is low can the Malaysia stock market index head to;

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. 

As a result, the index did not violate its technical support of 1,700 pts weekly EMA200weeks. The FBMKLCI rallied from 1,708pts -> 1,840pts on the 9th January 2018. That’s a good +7.7% gain for the start. 

How does the FBMKLCI weekly chart looks like now?

2018Jan-FBMKLCI-800x600

The historical high for the FBMKLCI stands at 1,896pts from the Year 2014 high.

Will the index test its historical high or even create another historical high above 2,000pts?

Yes it will! But the market does not move up on a straight line but consist of multiple ups (rallies) and downs (corrections). At the current stage the index is in the down (correction) comfortably looking at the support of 1,813pts for a quick correction leading to further rally. Else a longer one will be looking at the support of 1,795pts support. GENERALLY the overall trend on the FBMKLCI for year 2018 = Bull market (Uptrend market).

FBMKLCI performance DOES not judge the performance of your stocks!

To simplify everyone as usual, click to read and learn below:

https://trendfollowingmalaysia.com/2015/06/18/how-does-ema200-days-works/

2018Jan-SAPNRG-1000x600

VERSUS

2018Jan-AIRASIA-1000x600

As a constant reminder to all of us as a guide, a stock price above EMA200days Versus a stock price below EMA200days sums up how you should pick up stocks in your portfolio to make your Year 2018 fruitful!

There will be a lot of stocks as below. Look for them!

2018Jan-UMWOG-1000x600

**IMPORTANTLY**

This serve just one part of the guide to us all as a constant reminder. What’s next is to do your part of follow up analysis to set up your trading plan. As again a stock’s prices does not move up on a straight line but consist of ups (rallies) and downs (corrections). Hence if timing your entry into the market is not important, think again. How to look for timing in the market/stock? Think…..

t6

Founder of http://www.trendfollowingmalaysia.com

Author of http://www.trendfollowingmalaysia.com