Chart 1: FBMKLCI's daily chart as at July 3, 2020 (Source: Malaysiastock.biz)
Chart 3: BM Technology's daily chart as at July 3, 2020 (Source: Malaysiastock.biz)
The rally in tech stocks had earlier shown its potential when it helped FBMACE to make a new high in the current rally (see Chart). If you looked at the monthly chart (Chart 5), you will see that FBMACE has just surpassed the line connecting the high recorded its April 2015 & January 2018. This could mean that FBMACE may continue to trend higher. However, we should be careful to avoid a bull trap since the FBMACE stocks have rallied substantially over the past 4 months after it came off a deep selldown in March which was a bear trap.
Chart 4: FBMACE's daily chart as at July 3, 2020 (Source: Malaysiastock.biz)
In the current market, where winners keep getting pricier and non-performers remain dull (if not down), it is hard to recommend stocks with strong conviction. If the market is too confusing for you, then you should stick to cash or those stocks that you are comfortable investing in. Just tell yourself, you have good companies if you are sitting on cash or staying on the sideline (here and here).