We had a few days of good market last week. FBMKLCI is now pushing against the horizontal line at 1620. If FBMKLCI can surpass this level, the uptrend in the broader market will begin inearsest.
Chart 1: FBMKLCI's weekly chart as at Dec 4, 2020 (Source: Malaysiastock.biz)
Meanwhile, the small cap & fledgling stocks are racing up. FBMFLEDG has surpassed its immediate downtrend line, RR at 16000. It might revisit its 2017 high of 20100.
Chart 2: FBMSCAP's weekly chart as at Dec 4, 2020 (Source: Malaysiastock.biz)
Similarly, FBMSCAP has gone above the line connecting the recent high, R2-R2 at 14000. It is likely to test the long term downtrend line, RR at 16200.
Chart 2: FBMFLEDG's weekly chart as at Dec 4, 2020 (Source: Malaysiastock.biz)
Based on the above charts, the market is well-suited for trading in small cap & fledging stocks. If FBMKLCI were to break above 1620 convincingly, we will see a broad-based rally in the market.
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