After a study of the various indices in our market, I can see that FBMMSCAP (for mid-cap) has broken above its downtrend line while FBMACE has just tested the horizontal line at 4900.
Chart 1: FBMMSCAP's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
Chart 2: FBMACE's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
What have propelled the above 2 indices to the point of breaking out or nearly breaking out? I think the following sectors provide the answer- energy, technology and construction.
Chart 3: ENERGY's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
Chart 4: TECHNOLOGY's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
Chart 5: CONSTRUCTION's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
Meanwhile our main market barometers- FBMKLCI and FBMEMAS are slowly shaping up for a recovery play. You can see the stochastic indicators are both oversold and about to turn upward while the ADXs in the DMI are at their highs and poised to dip. When both of these go in the direction we anticipated, we may see a broad market rebound at the year end, which may lead to a CNY rally.
Chart 6; FBMKLCI's weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
Chart 7: FBMEMAS weekly chart as at Oct 25, 2019 (Source: Shareinvestor.com)
No comments:
Post a Comment