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


(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.


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.


In our previous post :Malaysia Stock Market Outlook Year 2018: Off to a great start!

We mentioned the historical high for the FBMKLCI stands at 1,896pts from the Year 2014 high and the market will consist of rallies and corrections. The last correction lasted at 1,812pts support and rallied towards 1,880pts high! But yet to hit it’s historical high 1,896pts.

Where does the FBMKLCI stands now?

  • Retracing into a correction from 1,880pts high.
  • Playing into the ‘sandwich box’ of 1,841pts range to 1,816pts SHALL 1,841pts support is broken down.
  • A rebound from the 1,841pts support will bring the index to test it’s historical high of 1,896pts.
  • A violation on the 1,841pts support will put the FBMKLCI into the ‘sandwich box’ trading at the range of 1,841-1,816pts.
  • As long as the FBMKLCI did not fall out of it’s ‘sandwich box’the bull run resumes. 


As the broad market stocks have fallen into a correction mode for almost 2 weeks, they are mostly oversold. Looking into bargain buy looks lucrative now. As always, avoid downtrend stock and you will do well in Year 2018! (Read back previous post on how to differentiate an uptrend vs downtrend)



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


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.