This is the 4th day after the big rally on February 20 (here). With each passing day, the market looks weaker, and our earlier excitement more misplaced. Let's re-examine the chart.
Chart: FBMKLCI's daily chart as at February 26, 2019_3.00pm (Source: Malaysiastock.biz)
As discussed on February 20, FBMKLCI broke above a pennant, ABCD at 1710. I expected the index to surge upward to test and break above the downtrend line, RR at 1732. Well, it did not happen. The market was not as bullish as I thought it should be. Now, FBMKLCI is pulling back towards the pennant, ABCD. If it can hold above the breakout level at 1710, it may stage another attempt to breach the downtrend line. We will have to wait and see.
That's the state of play in the market now. Let's hope the index can stay at or above 1710. If it can do that, the current correction could be a good thing as new players can now gain entry into stocks at slightly lower prices. If players can make pocket money in each market rally, then more players will step forward. With greater numbers, the budding force will swell and eventually it may breach the downtrend line.
For every winner, 9 are losing money
ReplyDelete