Market Outlook as at September 10, 2013

Two weeks ago, I mentioned that if FBMKLCI were to break below the 1700 mark, our market would be in big trouble (here). We actually broke the 1700 mark but fortunately we managed to snap back up. This recovery means that our uptrend line is still in tact.

Chart 1: FBMKLCI's weekly chart as at Sep 10, 2013_10.00am (Source: quickcharts)

The sharp recovery has brought the index up to the short-term or near-term downtrend line at 1780. As such, I believe the market upside will be capped for a while until we can take out this downtrend line. With so much uncertainties in the air, I believe that downtrend line will remain. For those, who had bought in the late August selldown (or, who were looking to reduce position during that period), the present level is a good level to do some selling.

Good luck.


Chart 2: FBMKLCI's daily chart as at Sep 10, 2013_10.00am (Source: quickcharts)