Wednesday, July 01, 2015

Market Outlook as at July 1, 2015 (UPDATED)

Our market is reacting positively to the news of Fitch revising our outlook back to stable (here). FBMKLCI, which was up 14.7 points, rose 28.0 points as at 10.30am.

Chartwise, FBMKLCI broke above the intermediate downtrend line, RR at 1720. This breakout signals a possible end of the current downtrend. The index could potentially rally to test the horizontal lines at 1650 1750 & 1680 1780.

Looking back, I must say that the potential for a rebound was foretold by the twin divergence in shown by MACD & Slow Stochastic. I hope that the recovery will continue to broaden out. The damage to the broader market has been severe and that will take time to recover. Can this happen with the tumultuous development in Greece and the volatility in Shanghai? Let's wait & see.


Chart: FBMKLCI's daily chart as at July 1, 2015_10.15am (Source: ShareInvestor.com)

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2 comments:

  1. JYWednesday, July 01, 2015 11:21:00 AM

    Many put warrants showed a bearish engulfing with heavy volume yesterday when KLCI only rose 14 points. That was also an early indication that a reversal is coming.

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  2. Alex LuWednesday, July 01, 2015 2:57:00 PM

    Hi JY

    There were many confirmed reversal among the put warrants of FBMKLCI. This should be at least a temporary bottom for the market. For the next few days, we can expect a slow climb to 1765-1780.

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