Market Outlook as at August 14

The failure of the market to stage a convincing rebound over the past few days reflects the current market weakness, which is likely to lead to further selling ahead. Looking at Chart 1 below, you can see that the KLCI's next supports are at 1285 (February high), 1250 (psychological level) & 1220 (longer-term uptrend line support). Similarly, if we look at the 2nd Board (see Chart 2 below), it is heading towards its uptrend support at the 100 level. On the other hand, the Mesdaq index (see Chart 2 below) is already at its uptrend support at the 128 level.


Chart 1: KLCI's weekly chart as at August 14 (courtesy of Quickcharts)


Chart 2: 2nd Board's weekly chart as at August 14 (courtesy of Quickcharts)


Chart 3: Mesdaq's weekly chart as at August 14 (courtesy of Quickcharts)