Our stock market is getting weaker with each passing day. FBMKLCI is now resting at the horizontal line at 1590. With the downtrend gathering strength (see the rising ADX), this support at 1590 may not hold for long. If this support failed, the index may go down to the next support at the lower line of the wedge, ABCD at 1570.
Chart 1: FBMKLCI's daily chart as at Aug 13, 2019 (Source: Malaysiastock.biz)
Looking at the weekly chart, we can see that FBMKLCI has been moving downward in a wedge formation, ABCD after making a high of 1896 in April 2018 (at the point marked as "A"). This matched the high recorded in July 2014 (at the point marked as "W"). If the index were to break below the lower line of the wedge, ABCD at 1570, it may go down to test the support at the horizontal line at 1530.
Chart 2: FBMKLCI's weekly chart as at Aug 13, 2019 (Source: Malaysiastock.biz)
We will have to wait and see how the stock market will withstand the fresh round of negative news ranging from the weak economic data to persistent trade war rhetoric. To add to the depressing brew, we have nincompoops for political leaders, here and abroad, that are determined to prove their worth only to their narrow constituencies instead of their entire population. These are the times that try the men's souls.
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