Friday, June 22, 2018

Market Outlook as at June 22, 2018

FBMKLCI has been sliding for the past 9 days. Yesterday it broke the horizontal support at 1710 as well as the psychological 1700 support. It found support at the intermediate uptrend line, S1-S1 at 1690. Between 1690 and 1650, there are multiple support which may stop the decline and provide the stage for a rebound. 


Chart 1: FBMKLCI's weekly chart as at Jun 22, 2018 (Source: MalaysiaStock.biz)


Chart 2: FBMKLCI's weekly chart as at Jun 22, 2018 (Source: MalaysiaStock.biz)

Many are anxiously watching the technical picture for DJIA. this index is approaching the 200-day moving average line at 24250 as well as the long-term uptrend line, SS at 24000. A break of these supports will bring out even more selling that may end a fine run. Until then, we will have to wait and see how this index will perform in the next few days.


Chart 3: DJIAs weekly chart as at Jun 22, 2018 (Source: Stockcharts.com)

Based on substantial decline over the past few days, I believe our market could be poised for a technical rebound. If you wish to reduce position due to uncertainty in the market, the best time to do that will be on a rebound. Good luck.

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