Malaysia FBMKLCI in a healthy market correction. How low will it go?

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The Malaysia FBMKLCI suffered a 2 days of heavy price correction after failing to break above its historical high resistant (1826pts). However the long term uptrend on the FBMKLCI remains intact as it has yet to violate its 2 major support to conclude this market as a downtrend market. Tomorrow we will see the FBMKLCI testing its 1st major support EMA90days moving average (1775pts). A good recovery from the 1st major support will end this correction early and the FBMKLCI will retest its historical high resistant. Failure to support at the 1st major support (1775pts) will highly bring the FBMKLCI to close its September gap at (1747pts) which is also the 2nd major and most critical support for the market to support at. *An uptrend does not move in a straight line. It consist of ups (rally) and downs (correction) within the period of uptrend.* While the FBMKLCI continues its healthy market correction the 2nd liner small caps stocks and penny stocks will be affected as well with profit taking activities. But we remain bullish on the 2nd liner small caps stocks and selected penny stocks after this healthy market correction ends. Therefore know where their support is at during the market correction.

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Majority of the small caps stocks are undergoing a price correction now. “Plan your trade. Trade your plan.” by knowing when to lock your profits. “Cut Losses” on stocks that has violated their trend support to avoid getting your capital stuck. Below are just a few of the stocks that we would like to share based on ‘Trend Following’. Trade wisely and act wisely!

CENSOF

CENSOF

IVORY

IVORY

SALCON

SALCON

JAKS

JAKS

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William Au

(Position Trader & Financial Speaker)

Malaysia Small Caps Stocks to trend higher this week: Trend Following Malaysia

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Trend followers are in the moment. They know that attempting to pinpoint the beginning of a trending market is futile. When trends begin, they often arise from a flat market that doesn’t appear to be trending in any direction. The idea is to take small bets early on in a market to see if the trend does, indeed, mature and get big enough to make big money. -President of Graham Capital Management

FBMSCAP

This week we will be focusing on the Malaysia FBMSCAP (Small Caps) Sector as it has been hovering at its resistant high (15,793) for 2 weeks. A possible breakout from its resistant this week lead by the Oil & Gas Stocks as they are all geared up to go for another healthy rally after 5 months of price correction. So do put the Oily & Gassy stocks into your to-trade-list this week. Other than that there are some small caps and penny stocks that we’ve been on favour for weeks that will continue to see more trending movement over the next 2 weeks. Therefore be profitable & ride on the trend!

(There are plentiful of profitable stocks in the market. Below are just some of the chosen one that we favour. Therefore always do your part of your homework and plan your trade beforehand)

ALAM5115)

ALAM

SCOMI (7158)

SCOMI

CLIQ (5234)

CLIQ

INSTACO (0069)

INSTACO

DESTINI (7212)

DESTINI

IVORY (5175)

IVORY

MALTON (6181)

MALTON

SALCON (8567)

SALCON

UCHITEC (7100)

UCHITEC

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William Au

(Position Trader, Financial Speaker)