Market Outlook as at July 11, 2017

Since my last post on market outlook on June 16, the market outlook has turned decidedly negative. In the last 2 days, FBM70 & FBMSCAP have broken their horizontal support. FBMFLG has broken the lower line of its symmetrical triangle. All in all, these 3 indices are poised to begin their downtrend.


Chart 1: FBM70's daily chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)


Chart 2: FBMSCAP's daily chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)


Chart 3: FBMFLG's daily chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)

Before we get to FBMKLCI, let's look at the odd index in our market - FBMACE. This index consists of many technology stocks are able to stay near its May high. It performance is similar to the Technology index, which comprises technology stocks on the Main Board. I have put them side-by-side.


Chart 4: FBMACE & Technology's daily chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)

FBMKLCI has broken below its "uptrend line" at 1775 in late June. Now it is struggling to stay above the horizontal line at 1760. If it fails to stay above this line - it is at 1754 now - then it may drop to 1720-1730. That was a strong resistance earlier and hopefully it will now play the role of a strong support.


Chart 5: FBMKLCI's daily chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)


Chart 6: FBMKLCI's weekly chart as at Jun 11, 2017_3.00 (Source: Shareinvestors.com)