Market Outlook as at July 9, 2015

This morning, FBMKLCI slipped below its intermediate downtrend line (which it managed to overcome last week). With this breakdown, FBMKLCI may renew its decline- especially if it can surpass its recent low at 1688 (recorded on 29/6/2015). As at 9.30am, FBMKLCI was trading at 1686.


 Chart 1: FBMKLCI's daily chart as at July 9, 2015_9.30am (Source: ShareInvestor.com)

Further decline in FBMKLCI may see the index testing the neckline of a Head-and-Shoulder formation. This very relevant reversal formation would be triggered if the neckline at 1675 is violated. We hope that the index will have a quick recovery today in order to avoid a nasty confrontation with the neckline at 1675.
 
 
Chart 2: FBMKLCI's monthly chart as at July 9, 2015_9.30am (Source: ShareInvestor.com)