Thursday, May 31, 2012

Market Outlook as at May 31, 2012

FBMKLCI is surprisingly pressing against the short-term downtrend line at 1580. A break above this downtrend line would be positive. If nothing else, it would signal a pause in the selling and an opportunity for stocks to form a base.


Chart 1: FBMKLCI's daily chart as at May 31, 2012_4.20pm (Source: Quickcharts)

I have looked through the indices of all the sectors in our market. Finance, Trading Services & Industrial Products are presently pressing against their medium-term downtrend line, while Construction & Plantation indices have yet to test their downtrend line. The chart for Consumer Product is tricky, as the index is presently in a V-spike recovery after a V-spike drop. The only sectoral index which has broken above its downtrend line is Properties (see below).


Chart 2: Properties's daily chart as at May 31, 2012_4.20pm (Source: Quickcharts)

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4 comments:

  1. luckystock2Friday, June 01, 2012 3:38:00 PM

    Hi Alex ,
    What's your comment on glove counters's performance on these few days?
    Tx!

    ReplyDelete
  2. Mat CendanaSunday, June 03, 2012 2:29:00 PM

    BSKL's performance last Thursday where stocks were generally up when most other countries were significantly down was indeed a surprise. But it was down on Friday, in line with the others.

    Europe and US stock exchanges suffered a drop on Friday after the Asian markets had closed. I'm wondering what's in store next week. The financial and political situations in Greece are already well-known but now there's another factor in the unfolding troubles of Spain.

    The market will be volatile, which offers chances for short-term traders and also investors looking at the longer term. When there's a mini-panic, the prices of even the solid companies that shouldn't be affected much by what happens elsewhere tend to come down. This would be a great buying opportunity for those with the guts and holding power.

    ReplyDelete
  3. Alex LuWednesday, June 06, 2012 12:15:00 PM

    hI luckystock2

    Rubber glove stocks should be positive, with rubber latex dropping & USD rising.

    However, looking through the sharts of the Big Four, only one has broken above their medium-term downtrend line. That stock is Supermx, which broke above its downtrend line at RM1.80. The other 3 stocks & their downtrend line resistance are:
    1) Topglove- RM4.70
    2) Harta- RM3.85
    3) Kossan- RM3.15

    ReplyDelete
  4. Alex LuWednesday, June 06, 2012 12:19:00 PM

    Hi Mat Cendana,

    The global market will continue to be volatile. Compared to these markets, our Bursa looks like a calm bay, even a safe harbor. Nevertheless, beneath the calm water, we can see some shipwrecks. This is a warning for those who play the market recklessly. If it is tough to make money in a bull market, imagine how much tougher to do so in a bear market.

    Good luck.

    ReplyDelete