Friday, August 7, 2009

FBM-KLCI Losing Strength ?

Yesterday evening the Malaysian share market reacted quite positive especially the speculation counters. From my point of view, I think that the speculation counters have potential to move up. Based on their movement yesterday, it seems that they have the ability to move higher.

As we can see the FBM-KLCI perform quite well these few days. But their movement showing that they are losing some strength. At these moment the sentiment still quite bullish with more and more shares are creating new high. If we want to follow the sentiment right now, we have nothing to worry about.

But based on the FBM-KLCI movement, we need to monitor further how the FBM-KLCI going to move these few days because based on the chart wise, they seem like forming a round. FBM-KLCI need to go higher is order to cancel that particular pattern. This just a pattern only and we cannot take it as it will happen. This is just a pre-caution measure only.


Bean Chun Toi said...

I dont think FBMKLCI will lose much strength that much, esp with 30 main stocks in it. The gov. investment just need to prop up few stocks to keep it going up.

The index may not reflect broader market.

Nevertheless, I see index hitting 1,700 before next election. You see.

Jackie Lee said...

Good Comments. Next Election will be sometime around 2012 or 2013. So it is still far away.

1,700 might happen so we will see whether it will happen before Malaysia next general election.