Chart 1: FBMKLCI's daily chart as at Dec 23, 2011 (Source: Tradesignum)
With the above mildly positive signal, another feather is added to the rooster of positive technical readings for the index. Let's look at the weekly & monthly charts below and list out the positive & negative readings. The positive readings are:
1) 10-week SMA line is swinging upward, while the 40-week SMA line is beginning to flatten out. 10 & 20-month SMA lines are similarly rising again.The negative readings are:
2) The index is above the 10 & 40-week SMA lines as well as the 10 & 20-month SMA lines.
3) the weekly technical indicators (MACD, RSI & ADX) are all curving upward. In particular, the weekly MACD has hooked up and this could signal the beginning of a recovery in the market.
4) The weekly ADX seems to place the index currently at the same space as 1Q2009.
1) The monthly MACD is still bearish.Based on the balance of probability, I believe the market could be at the start of a recovery.
2) The other monthly technical indicators (RSI & ADX) are still pointing downward.
Chart 2: FBMKLCI's weekly chart as at Dec 27, 2011_3.00pm (Source: Quickcharts)
Chart 3: FBMKLCI's monthly chart as at Dec 23, 2011_3.00pm (Source: Quickcharts)
2 comments:
Hi Alex ,
What do you think about Hiaptek? I think the sell down recently was overdone and it might be a good time to buy some now? Your opinion will be much appreciated.
Tx!
Hi, Alex,
Remember me , I commented on your Blog when the world market plunge recently. My view is the world govt will not let the world economy to sink into another plunge. And I am right. I bite the bullet, I buy all the way down with cold sweat. Today I am still bullish on the world market including ours. 2012 will be a bullish year, trust me. Be a contrarian , I am.
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