Market Outlook as at August 25, 2015

In an earlier post, I posit that FBMKLCI may find some support at the middle line (B-B1) of the upward channel (here). The market had a short rebound on August 18 and the selling returned. Yesterday, FBMKLCI crossed below the middle-line into the lower half of the upward channel. The crossing of this line signals further downside for the market. Unless a strong recovery happens, the market may go all the way to the lower line (C-C1) at 1200. (Note: The middle-line dissects the upward channel into 2 halves: the upper portion is denoted as "1" while the lower portion is denoted as "2".)


Chart: FBMKLCI's daily chart as at Aug 24, 2015 (Source: ShareInvestor.com)