Market Outlook as at June 30, 2015

Yesterday, our stock market was badly hit by another down day in Shanghai & Greece's imminent default on its IMF debt payment. FBMKLCI lost nearly 19 points to close at 1692. In the process, FBMKLCI broke the psychological support of 1700. What is standing in the way of a sharp plunge is the less-than-impressive support from the line connecting the low of August 2013 & December 2014 (AB) at 1675. Look at the weekly Chart 1.


Chart 1: FBMKLCI's weekly chart as at June 29, 2015 (Source: ShareInvestor.com)

From the monthly Chart 2, we can see that the bearish reading from price action, overlays and indicators (as noted previously) remain in place. Investors & punters are now confronted with a falling market and the uncomfortable question: Will it be a mild drop like 2000 or a sharp one like 1997 or 2008? Only time will tell.


Chart 2: FBMKLCI's monthly chart as at June 29, 2015 (Source: ShareInvestor.com)