Market Outlook as at August 28, 2015

The rally across the board in stock markets worldwide has been very impressive. The same can be said for our Malaysian market. In addition to the 2 moving average lines (20 & 40-day EMA lines) acting as resistance, we have two gaps at 1635 & 1677 which could also serve the same purpose. With BERSIH 4 taking place this weekend, market players may play it safe by taking profit in the afternoon. I believe that's a good idea as FBMKLCI is nearing my target of 1640-1650 for this rally.


Chart: FBMKLCI's daily chart as at Aug 28, 2015_12.30pm (Source: ShareInvestor.com)

Meanwhile DJIA may have another 2-4% upside before it has to face the resistance at 17000-17350.


Chart 1: DJIA's daily chart as at Aug 27, 2015 (Source: Stockcharts.com)