Wednesday, August 19, 2015

Market Outlook as at August 19, 2015

The anticipated market rebound took place yesterday, despite the sharp drop in Shanghai. This is fairly encouraging and gives hope that the rebound may have staying power and could propel the FBMKLCI beyond 1600- possibly to 1640.

 Chart 1: FBMKLCI's daily chart as at Aug 18, 2015 (Source:

Meanwhile, FTSE China A50 slipped back below its medium-term downtrend line, RR yesterday. The fortunate thing is that the index managed to close above the horizontal line 10700. Hopefully, it can move sideways from here, to form a base. However, the situation in China is very fluid and a downside breakout could easily happen today.

 Chart 2: FTSE CHINA A50's daily chart as at Aug 18, 2015 (Source:

No comments: