Our market has been declining for the past 4-5 days. Pressured by foreign funds selling, FBMKLCI continued its loosing streak which stretches back to May 2018. The decline takes the shape of a downward wedge. FBMKLCI may soon test the lower line of the wedge at 1605, and hopefully this will probably a rebound for the index.
Chart 1: FBMKLCI daily chart as at May 10, 2019 (Source: Malaysiastock.biz)
The other indices have been rising for the past 4 months but they all broke their medium-term uptrend lines last week.
Chart 2: FBM70 daily chart as at May 10, 2019 (Source: Kenanga's BTX chart)
Chart 3: FBMSCAP daily chart as at May 10, 2019 (Source: Kenanga's BTX chart)
Chart 4: FBMACE daily chart as at May 10, 2019 (Source: Kenanga's BTX chart)
Chart 5: FBMFLG daily chart as at May 10, 2019 (Source: Kenanga's BTX chart)
Based on the simultaneous breakdown of all the 2nd and 3rd liner stock indices, our market will likely go lower in the near future. Trading in this market will be very tricky and not advisable. Investors will have to accept a longer time horizon for their investment.
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