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Thursday, May 24, 2018

Market Outlook as at May 24, 2018

Our market is shaken by reported huge losses in 1MDB and higher government debts exceeding RM1 trillion and counting. This is a quick take on the market outlook. I believe FBMKLCI will likely test the horizontal support at 1760 and then the intermediate uptrend line at 1750. See Chart 1.


Chart 1: FBMKLCI's weekly chart as at May 24, 2018_9.30am (Source: Shareinvestor.com)

Depending on news flow, the market selldown may break the above-mentioned supports and send the index all the way to the long-term uptrend line support of 1700. We will see whether this long-term uptrend line will hold or be violated.


Chart 2: FBMKLCI's monthly chart as at May 24, 2018_9.30am (Source: Shareinvestor.com)

A few blue chip stocks look quite attractive even as I am writing this post. They are Maybank at the uptrend line of RM10.00 (it violated that momentarily) and Tenaga at the uptrend line of RM14.40-14.50. Exercise careful discretion in your investment. Good luck!

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