Monday, August 24, 2015

Dow Jones Is Moving Into Negative Zone. KLCI - "Catch A Falling Knife"


Finally the Dow Jones Industrial Average have show its colour. For the past three trading days the Dow Jones have drop more than 1,000 points. From the high created in May, the Dow Jones have drop around 10 percent.
 
It seems that this is just a beginning of a correction or maybe a downtrend. What I really don't like is the Dow Jones index still way below the SMA 200 days. An indicator stated that whether this index is moving downwards in few month to come unless the index manage to stage a comeback and stay above the SMA 200 days. 
 
 
For the FBMKLCI the next target would be 1,526.26 point created on 18/02/2012. Today the index have drop another 30 points this morning (around 1,545 point). At these moments it is very hard to determine where the index is heading to. Last Friday performance, the KLCI managed to pull back from a sharp drop of 20 points in the morning and close just down -2.74 point.
 
It did show some strength as the KLCI is really oversold but the "Ringgit" is experiencing another sharp fall today. Now the ringgit is traded around RM4.24 for 1 USD. Not really a good sign for the KLCI. Anyway we must believe that there is no such thing that the index will be heading straight to the south without gaining some technical rebound.
 
Now is a game of: "Catch A Falling Knife". 

Tuesday, August 18, 2015

FBMKLCI Got Potential To Rebound?


Judging from the total points the KLCI has drop, technical rebound was just around the corner. From the last peak of 1,730 (05/08/2015) till today the KLCI has drop about 170 points. Based on yesterday closing we still didn't see any technical reversal pattern that is taking place.
 
Today closing will be very important to determine whether the FBMKLCI will have a technical reversal in the making. For the first target of rebound if do happen will be around 1,595 point.
 
Overall market sentiments still bearish. As long as our Prime Minister still managing the country, the economy won't be good and we might have prolong issue concerning the currency.

Wednesday, August 12, 2015

UMWOG Looks Attractive With Current Price of RM 1.05 - RM 1.10


UMWOG now at it lowest. At the price of RM 1.05 - RM 1.10, it is a good price to enter for a rebound? Since the month of July the price have drop sharply from a around RM 1.70 till RM 1.05 - RM 1.10
 
FBMKLCI has drop more than 100 points in 5 days. There might be a rebound around the corner but "Catching a Falling Knife" is not easy and quite dangerous as well.