Thursday, February 08, 2018

Market Outlook as at February 7, 2018


Looking at the daily charts for FBMKLCI and FBM70, you will see that we had 2 gap-down days on Monday & Tuesday, which were followed by a gap-up day yesterday. The gap between Monday & Tuesday was so big that it accommodated the entire range of trading yesterday. The fact that the high of yesterday was lower than the low of Monday, shows that the buying enthusiasm was rather thin. In that sense, DJIA did better than us yesterday. However, I like to look at DJIA as the leading market and their market action yesterday seems to suggest that we will have a weak follow of the rebound - something which traders watching the market would have felt in the afternoon. 


Chart 1: FBMKLCI's daily chart as at Feb 7, 2018 (Source: Shareinvestor.com)


Chart 2: FBM70's daily chart as at Feb 7, 2018 (Source: Shareinvestor.com)


Chart 3: DJIA's daily chart as at Feb 7, 2018 (Source: Stockchart.com)

I like to give a quick take on crude oil and CPO charts. Brent crude has broken its uptrend line. Its next strong support is at USD65.


Chart 4: BRENT's daily chart as at Feb 7, 2018 (Source: Stockchart.com)

CPO is in a downtrend line, with strong support at RM2300. It will probably trade between RM2300 and RM2500 for the next few weeks.


Chart 5: CPO's daily chart as at Feb 7, 2018 (Source: Investing.com)

Based on the above, caution is the order of the day. Keep a check on your trading activity, and invest carefully (even, stingily). Good luck!

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