Our FBM-KLCI broke the long-term uptrend line at 1565-1570 last week. Today it broke the 20-week SMA line at 1550. The next support is the 40-week SMA line at 1519. The index is weakening pretty like 1st quarter 2008.
Chart 1: FBM-KLCI's weekly chart as at Aug 3, 2011_10.30am (Source: Quickcharts)
As noted earlier, FBMScap & FBMFLG have recorded the negative crossover between the 10-week SMA line & the 20-week SMA line. The final straw would when these indices break the 40-week SMA line, which is still intact. Like the FBM-KLCI, the indicators for bith FBMScap & FBMFLG have also been weakening.
Chart 2: FBM-Scap's weekly chart as at Aug 3, 2011_10.30am (Source: Quickcharts)
Chart 3: FBMFLG's weekly chart as at Aug 3, 2011_10.30am (Source: Quickcharts)
Based on the above & the earlier comment on global equity markets, we should be extra careful in our trading as well as avoiding too large an investment portfolio.
1 comment:
FMB70 still very strong.
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