Sunday, May 24, 2015

Lower High And Lower Low Created. Bearish Sign.

Last Friday the KLCI closed much lower than the previous low (13.05.2015) of 1,795.16 point. This is a bad sign as it deems that the KLCI would eventually going to create new low.


As we can see after the technical rebound occurred, the KLCI managed to climb until 1,823.50 (18.05.2015) point before it took a sharp U-turn and went down on the next day.

It really caught me by surprise as the U-turn was so fast. It just took 4 days for it to come down to close last Friday at 1,787.50 from a low of 1,780.11 point.

Next support would be 1,774 point. If this support also taken out, the next target would be around 1,706 point. Stay out from this market because at these moments it is quite bearish with "Lower High and Lower Low" been created. A sign of a DOWNTREND in the process.


Group discussion on "Malaysian-Shares FBMKLCI" Facebook.

Thursday, May 14, 2015

Trend Reversal In KLCI ?

Yesterday for the first time the MACD Histogram indicator flashes GREEN and today another GREEN with another candlestick "Hammer" appeared. The day before it show another sign of candlestick "Doji" star (12.05.2015) appeared.
 
 
Usually when these candlesticks appeared, there will be a sign that a "Trend Reversal" is taking place. The MACD Histogram also flashes Green. It suggested that the downtrend is at pause.
 
With the MACD histogram turn into 2 Green, the FBMKLCI will slowly turn into positive momentum with the index trying to climb even higher.
 
With today index closed up 4.53 point at 1,807.55 point, it should have confirm that the trend have change to more positive bias. At these moments we are still in early stage but a careful approach is needed in order to make sure that we didn't lost the battle.

Sunday, May 10, 2015

Any Rebound For The FBMKLCI Ahead ? Candlestick "Inverted Hammer" Appeared.


Good morning. From my previous article on the KLCI if the index managed to close higher when the "Two Hammer" appeared we might see a technical rebound but it didn't materialize when the index close down -15.87 point to close at 1,805.10 point.

But one thing for sure another candlestick "Inverted Hammer" appeared on Thursday closing (07.05.2015). On Friday when the market was closed it appear again another "Inverted Hammer".


Basically from the candlestick guidance, a confirmation of the next day candlestick (Monday), can only confirm whether the share market can rebound or we can call it a Trend Reversal. An opening higher with white long candlestick would be prefer on the next trading day to confirm it.


With the "Dow Jones" went up about 267 points on Friday closing to close at 18,191 point, we might see the KLCI will be open higher from the previous close of 1,807.65 point. 

Thursday, May 7, 2015

Two Candlesticks Hammer Appear. We Might Have A Technical Rebound On FBMKLCI?


Two Candlestick "Hammer" appear for the last 2 trading days. It shows that the FBMKLCI is gaining some support especially during the closing trading hours. It also appear that the index closed above the 200 days moving average of 1,818 point. The 1,818 point appear to be a very strong support at these moments.

Indicators still appear weak for FBMKLCI and it didn't show any sign of improvement and the world equities markets are facing some selling momentum.

If today the FBMKLCI closed higher and stay above 1,818 point with long white candlestick, we might have some trend reversal ahead. It is still too early to tell but based on today opening at low 1,808.32 (-12.65), if the index close higher we might have a trend reversal; maybe a small technical rebound might happen to the FBMKLCI.

This is just my point of views and we cannot treat as an intention to buy or to sell. Anything can go wrong from here. Just be careful when we do the trading.

Group discussion on "Malaysian-Shares FBMKLCI" Facebook.

Monday, May 4, 2015

FBM KLCI Is Going Into Correction Mode? Be Careful.

 
Chart as at 28.04.2015. Article posted on 29.04.2015
 
After last week posting on FBM KLCI (http://malaysianshares.blogspot.com/2015/04/fbmklci-still-not-strong-enough.html) movement on Wednesday 29.04.2015, the market took a huge tumble on the next day dropping hugely about 24.66 points.
 
The main support of 1,836 would remain as a resistance. This huge drop I didn't expect it to happen but it did happen all the sudden.
 

Chart as at 30.04.2015

At these moments based on the weekly chart, the chart turn to negative as it appear that a long "Black Candlestick" exist. It is not a good sign for this coming week. It show more negative sign with histogram start flashing "RED" and weaken.
 
Stay out from the share market would be advisable unless we have some positive sign ahead but I'm doubt about it. It seems that the correction is taking place right now.

Chart as at 30.04.2015 (weekly chart)

Wednesday, April 29, 2015

FBMKLCI Still Not Strong Enough.

After last week posting on FBMKLCI indicators, the index climb up and close higher the next day (24.04.2015). It went up almost 16.50 point to close at 1,862.58 point. Actually it caught me by surprised during that time. In the end the uptrend didn't materialize at all the next following trading day after another black candlestick appeared.

From the share market sentiment it shows that the overall momentum didn't argue very well that the FBMKLCI is trending towards up. The trend currently show more sign to move lower. 


The 1,846 point currently will stand as a minor support and from the previous post I have mention before that 1,836 point still stand as a main support in order to preserve the current trend but if the index move below that point, it would be bad.

Candlestick indicators argue very well these few days showing sign of weakening momentum on FBMKLCI with "Dark Cloud" and "Shooting Star" appear on top. Indicators such as MACD (moving sideways - most probably going down) and the MACD Histogram also weakening, we might having the some same situation happen in the middle of February till end of February - a correction sell down.

It would be wise-able to stay out for a moment and monitor the whole situation before making any new commitment with no indication where the share market is heading to? Just be careful with our trade or to be more cautious.

Anyway it is just my point of views and it didn't argue one must buy or sell in the market. Anything can happen. Dow Jones Industrial Average still standing very well at this moment. 

Thursday, April 23, 2015

FBMKLCI Set To Move Lower ???

Another week passes by, there are some interesting candlesticks and indicators just appeared recently. Last Tuesday (21.04.2015) the FMBKLCI moving in an outstanding ways breaking the resistance level of 1,858 point in tandem with the Dow Jones up about 200 point on Monday night.
 
 
At that time the sentiment look so strong which I'm expecting it will be a continuation trend moving forward but when the opening bell started the next day 22.04.2015 (Wednesday), things look a bit different with the sentiment all the sudden turn dull and showing sign of weaknesses (bearish).
 
On Wednesday closing, the FBMKLCI candlestick closed with a DARK CLOUD pattern. It appear that the index is already reaching its top but it didn't mean that it was a trend reversal but on Thursday (23.04.2015) the FBMKLCI candlestick  appear again with a second bearish confirmation of SHOOTING STAR pattern.
 
Both of these candlestick patterns argue very well that the FBMKLCI are at the top or maybe near the end of the trend. At these moments a careful approach and trade still need to be implemented in order to secure our initial trading. With MACD crossover and MACD histogram appear weaker, the FBMKLCI might be adjusting its trend more to the downside.
 
Next supporting level will be 1,836 point. If this level been taken out, the FBMKLCI will turn ugly in near term. Just be careful with our trade.
 
The month of May is nearing; maybe it is about time for the world equities market to take a breath after the long run.

Friday, April 17, 2015

FBMKLCI Showing Sign Of Weakening. "Selling Into Strenght".

These few days I have been watching how our index is performing and where the FBMKLCI will bring us to? Frankly from my point of views, our share market sentiment is still not strong enough with the MACD indicator almost flash selling signal.


The MACD not yet cross but definitely there are some danger elements been created now with the MACD histogram also show more weakening signal day by day. Can we call it that the FBMKLCI is still consolidating???

These few days movement is very important to determine where our FBMKLCI is heading to. Any opportunity arise is to "Sell on Strength" rather than "Accumulate on Weakness".

No doubts the FBMKLCI still stay above 200 days moving average, still a careful approach need to be implemented in order to prepare for our self if the FBMKLCI has lost its momentum. At these moments some of the world equities market still in a bullish position with all the indicators still show positive sign. 
 
These will eventually help the FBMKLCI keeping up its momentum. The current support for the FBMKLCI stand at 1,836 point with strongest resistance still stand at 1,858 point. Breaking down 1,836 point will bring the FBMKLCI to create lower low.

Friday, April 10, 2015

Can FBM KLCI Reach Its Old Time High of 1,896 Point ?

Based on the chart reading, the KLCI has reach it first target - 1,845 point and the second target - 1,858 point as well. At these moments based on the MACD reading, KLCI might take a hold to adjust its recent upwards after breaking the most strongest resistance level of 200 days moving average at 1,822 point.
 
 
These 200 days moving average would turn into a major support at these moments. Basically if we analyst the current share market sentiment, I would rather say the sentiment didn't picture the whole share market prices hence I would say it is not a healthy market to trade unless we are very sure on our favourite counters.
 
Most of the counters in Bursa Malaysia still trade below 200 days moving average. Hence I would rather say that a careful trading technic need to be implemented in order to trade in this share market.
 
Looking at the overall picture, the whole world share market movements currently at bullish phase with the Dow Jones Industrial Average also showing some promising signal. With the world sentiments turn bullish, will it help FBM KLCI to move higher to reach its old time high of 1,896 point ? 

Friday, April 3, 2015

KLCI Is Moving Towards 1,845 Point? Overall Share Market Sentiment Still Dull.

It has been about 2 years from today I didn't write anything or post anything about our Malaysian share market. But today I will try my best to share my personal view on how our Malaysian share market is doing right now.
 
These few weeks we can see the index have try its very best to overcome the 200 days moving average and indeed last few days the index have managed to stay above the critical level of 200 days moving average at 1,822 point. 


At these moments the momentum are favouring the index to climb up to reach another resistance level of 1,845 point but overall individual stock didn't show any sign of a healthy share market environment.
 
We might be seeing the index keep on creating new high in the process from the previous low 1,774.30 point (16.03.2015) but still most of the individual stock prices didn't perform at all. Overall the share market sentiment still look dull. 
 
It is not an overall share market movement. It is merely some index stocks pushing up the index higher and higher with some penny stock moving here and there but we cannot say that this is a false alarm in their movement because the indicators are showing some positive sign at these moments.