Tuesday, May 15, 2012
Market Outlook as at May 15, 2012
Chart 1: FBMKLCI's daily chart as at May 14, 2012 (Source: Quickcharts)
Despite the poor sentiment, FBMKLCI is still in a long-term uptrend line, SS. However, further decline- in line with the decline in global equity markets- could push the market to test the uptrend line at 1420. While the long-term uptrend may remain intact, a fall from here could still be damaging to anyone's portfolio. At this moment, both weekly MACD & RSI are weak and trending lower while the -DMI is sliding & +DMI is rising.
Chart 2: FBMKLCI's weekly chart as at May 14, 2012 (Source: Quickcharts)
Based the above, we should be very cautious in the market in view of the bearish outlook for the short-term. However, it is not necessary to sell aggressively or substantially as the long-term trend is still up.