Market Outlook as at June 6, 2017

Investors and punters will quickly learn humility in the stock markets. If there is one thing that stock markets can do very well is this; it can prove us wrong! Yesterday I wrote that FBMKLCI was not likely to break above the horizontal resistance at 1785. At the end of the day, that's exactly what it did! It closed at 1788 or 3 points above that resistance! If FBMKLCI can stay above the 1785 mark, it is likely to continue with its prior uptrend.


Chart 1: FBMKLCI's daily chart as at June 5, 2017 (Source: Shareinvestors.com)

As noted yesterday, FBMACE & FBMSCAP are likely to continue their recovery though I should highlight that FBMACE corrected a bit yesterday.


Chart 2: FBMACE's daily chart as at June 5, 2017 (Source: Shareinvestors.com)


Chart 3: FBMFLG's daily chart as at June 5, 2017 (Source: Shareinvestors.com)

The 2nd & 3rd liner stocks rallied yesterday, and that lifted FBM70 & FBMSCAP right up to the violated uptrend lines. Can these indices break reclaim the violated uptrend lines?


Chart 4: FBM70's daily chart as at June 5, 2017 (Source: Shareinvestors.com)


Chart 5: FBMSCAP's daily chart as at June 5, 2017 (Source: Shareinvestors.com)

For the market to continue its recovery, we like to see FBMKLCI stay above the 1785 mark and FBM70 & FBMSCAP to break above and stay above their previous uptrend lines. If these 3 indices can perform as we hope for, then the market will continue to be bullish.