Friday, February 10, 2012

Market Outlook as at February 10, 2012

The past few weeks have been very kind to second & third liner stocks. However, we must be careful for the next week as the index for FBMFLG, FBMACE & FBMSCAP are now testing the high in early 2011. There is a good chance that the market may fail on this first attempt and the case will then be set for a correction for the broad market. See Chart 1-3 below.

Chart 1: FBMFLG's daily chart as at Feb 10, 2010 (Source: Quickcharts)

Chart 2: FBMACE's daily chart as at Feb 10, 2010 (Source: Quickcharts)

Chart 3: FBMSCAP's daily chart as at Feb 10, 2010 (Source: Quickcharts)

Meanwhile FBMKLCI is testing the upside of a rising wedge (at 1566). Can FBMKLCI break above this resistance or would it correct in tandem with the second & third liner stocks? If it can surpass this resistance, its next resistance is at the horizontal line at 1575 & then the all-time high at 1595 recorded in July 8, 2011. If it failed to breakout of the wedge, it may drop back to the downside of the wedge at 1522-1525. See Chart 4 below.

Chart 4: FBMKLCI's daily chart as at Feb 10, 2010 (Source: Quickcharts)

Based on the above observation, we should be reduce our trading position next week.


Digital said...

At this moment dow drop next week market will be in correction mode. Let see how bursa react.

leslieroycarter said...

Thanks for sharing

soonyeah said...

Hi Alex,

Do we still see the downside risk for FBCM KLCI as you mentioned in your earlier post in Market Outlook as at January 26, 2012

luminaire10 said...

Hi Alex,

Could you pls comment on Waseong? How do you see their de-merger plan of its oil and gas business? And will it affect their share price? Is this a medium to long term investment stock?