Investopedia considers a formal downtrend occuring when each successive peak and trough is lower than the ones found earlier in the trend. Looking at Chart 1 below, the downtrend has just occurred. Unless we see a quick rebound in the next 1-2 days, our market is likely to go South.
Chart 1: FBMKLCI's daily chart as at Oct 17, 2017 (Source: Shareinvestor.com)
People will inevitably ask, "Where is the next support?" The answer is 1730. And, below that the next support is at 1700.
Chart 2: FBMKLCI's weekly chart as at Oct 17, 2017 (Source: Shareinvestor.com)
The next 1-2 days will be very critical for our market. This is not what I have expected in the light of US markets going into new high as well as regional markets making new highs. Let's hope the market will prove me correct in my earlier bullish forecast and stay the course for a new high in 2018. Until the quick rebound happens, be careful out there.
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