FBMKLCI has just surpassed the "horizontal line", R1-R1 at 1805. This is a positive signal after the breakout above 1800 last week. However, this breakout is not confirmed by FBMEmas, which is still stuck at the "horizontal" resistance at 12600. If FBMEmas also surpassed that resistance and the market breadth & volume improved, our market would continue with its prior uptrend. The immediate target would be 1850.
Chart 1: FBMKLCI's daily chart as at Oct 23, 2013_10.30am (Source: Quickcharts)
Chart 2: FBMEmas's daily chart as at Oct 23, 2013_10.30am (Source: Quickcharts)
If the above scenario panned out, we may have a decent rally in the next few weeks. However, we should not be carried away by the rise in FBMKLCI, if it is not confirmed by FBMEmas or by an improvement in market breadth or volume. This could then be simply a short Budget play that could end in tears.
Good luck!
2 comments:
Those who stubbornly short bourse indexes this passed few years - are really paying for betting against mart's trends. All traders must not only remember "The trend is your friend!" but also practises this. Then recognize your mistakes & quickly ractify it.
Will i continue to ride the trend? For sure, i won't stubbornly bet against it!
Anyway, i'm no trader but an investor.
Invest/trade at your own risk
Good luck, love & good karma to all.
Kevin
Thank u for the information.
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