Chart 1: FBMKLCI's daily chart as at Jan 6, 2018 (Source: Shareinvestor.com)
Chart 2: FBMKLCI's monthly chart as at Jan 6, 2018 (Source: Shareinvestor.com)
My July 2017 bullish market outlook is predicated on two assumptions:
1. US markets, which are at all time high, shall avoid a crash.
2. MYR shall avoid another bout of weakening.
From Chart 3 below, we can see that USD-MYR is now in a downtrend, with MACD below the zero line and the +DMI and ADX are rising fast.
Chart 3: USD-MYR's weekly chart as at Jan 6, 2018 (Source: Investing.com)
Some investors believe that MYR recovery is due to the improvement in crude oil prices. This may be true, and we can see that Brent crude oil prices are on a steady increase. However I believe the USD67-69 will be a strong resistance which may cap price rise for the next 2-3 months.
Chart 4: Brent's weekly chart as at Jan 6, 2018 (Source: Investing.com)
If you are sitting on a pile of cash, this is a good time to lose the cash. By that, I mean you deploy your cash quickly in the market. Good luck!!