FBM-KLCI Touching Their Strongest Resistance Level!

Since the announcement of intervention from the G7 group to help Japan, the Asian equities market are showing sign of improvement. The G7 group, whose members include the United States and the UK, joined the Bank of Japan in stepping into the currency markets to curb the soaring yen. This really help to stabilize the regional Asian equities market.

In the local front the announcement of Sarawak State Election also help our share market to boost a little. Looking at most of the counters, we can see most of the speculation counters are moving. The FBM-KLCI is moving towards their strong resistance level of 1,529 points. Able to penetrate and cross over that resistance with strong volume would confirm our share market is moving upwards.

At these moments the FBM-KLCI is touching their strongest resistance level. It is a good time to go in? Since the FBM-KLCI is touching their strongest resistance level, it is good for us to monitor current market sentiment and movement before any decision can be made. Usually it is not advisable to accumulate if the FBM-KLCI is facing their strongest resistance level.

An Opportunity Arise From Japan EarthQuake?

An Earthquake + Tsunami + Nuclear Crisis. These were the concern at these moments and the main concern was the Nuclear Crisis. It was an unfortunate thing to happen to the people of Japan. My condolences to all the people of Japan who has lost their loves one. Anyway life needs to move forward after this tragedy.

Was there an opportunity arise from recently sell off on our Malaysian share market? Definitely it was an opportunity but when was it? From yesterday transaction we can assume that the sell off was done quite heavily but if we take a look on their prices, still we cannot assume that the prices were cheap enough for us to went in. A small rebound has occurred but how long can it sustain?

Based on the FBM-KLCI chart, we can see that the FBM-KLCI is moving side way in between 1,480 points to 1,529 points. Strong support still seen at 1,480 points. If this point been taken out drastically, we can assume that the Malaysian share market might be heading to the South. It would create another downtrend market in the process.

The world equities market still looks unstable after recently sell off. Based on their charts reading, it seems that they are heading to the South. This is not a good sign. With the current sentiment is still unclear, it is advisable to stay out for a while. At these moments the opportunity to make some income will be lesser if we want to compare the losses that we might be facing.

The Bears are getting stronger and stronger at these moments and the Bulls cannot be seen anywhere. With the nuclear crisis in Japan still looks very unclear, it is advisable to wait and look for any opportunity that might arise from this crisis.

Recently comments from The European Union's energy commissioner warned that "possible catastrophic events" in Japan could be seen in the next few hours. “The site is effectively out of control,” Energy Commissioner Guenther Oettinger told a European Parliament committee. “In coming hours there could be further catastrophic events which could pose a threat to the lives of people on the island.”

FBM-KLCI Looks Much More Better. Can The Index Move Higher?

Last Friday the FBM-KLCI performs very well. The index was up +15.73 points to close at 1,522.61 points. Still the FBM-KLCI needs to penetrate the strong resistance level of 1,529 points. Able to do will show more positive sign for the Malaysian share market.

Based on technical indicators the MACD is showing sign of accumulation at this moment but the indicator is still well below the neutral zone (negative zone). Beside the MACD, others indicators are showing some improving sign.

Monitoring the share market movement right now will be the right timing to do as we can see most of the shares were at low. It might be an accumulation time but the best timing to accumulate is to wait for any opportunity arise (accumulate when the share market was weak or in the correction mode). Just be careful when choosing a right counter.

Right now our share market is in the process of technical rebound (going up). Most of the counters that were gone down for the last few days have shot up nicely since last Thursday and Friday. Volume and turnover still not promising yet, the Bulls might be still resting. Any how watch the share market movement closely this month, there might be some opportunity arises in the coming month.

TIMING Play An Important Role To Determine Our Profit Potential

Since my last article until now, there have been no changes that we have to accept that the Bears are controlling the share market at these moments. As we can see for the past two weeks the Malaysian share market was controlling by the Bears. The Bears were just too great and too strong for the Bulls to come out from the hiding.

From my point of view, staying out from this share market for a while will be the best strategies as there is no indication that our share market is going to get better. It might become even worst but if we take a look what is really happen around the world equities sentiment right now. With the crude Oil prices reaches $100 per barrel and the share market volumes or the transactions are getting lesser and lesser, it is not a healthy market to trade with.

Basically based on these few days transaction, a technical rebound might occur around this week or next week provided that these few days the share market still heading towards the South Pole but this time around the technical rebound won't be easy to be trade. As usual choosing a right counter will determine our profit margin.

Looks for any counters that are experiencing sharp falls since last two weeks. These counters might have the big potential to add and to bring more profit into our pockets. One thing for sure TIMING plays an important role to determine the whole market sentiments. Catching the right counter but not at the right timing will definitely trim our profit potential.

At these moments we must concentrate in monitoring the share market movement and the sentiment. Any panic selling will be treat as an opportunity to grab at the lower prices. I would assume that at these moments we are playing "Catching A Falling Knife". If we are not careful enough, we might have a big cut in our hand and it might affect our confidence as well.