9 Days of Black Candle appeared but yet there is still no sign of any technical rebound is going to happen. Have to for Monday closing to determine that.
Saturday, May 30, 2015
Thursday, May 28, 2015
Technical Rebound Around The Corner?
Till today the KLCI have already decline for almost 7 days. If today still decline, it would have been down for 8 days. Based on yesterday movement, we can notice that the index is trying to rebound after dropping for so many days.
No doubt the indicator still didn't flash any sign of rebound, but yesterday momentum and with the previous candlestick reading "SUGGEST" that the market maybe nearing the bottom.
Anyway if any rebounds occur, the 1,774 point level will be a resistance for the KLCI. We might have a technical rebound around the corner but it would be a short term rebound only. Just be careful. How low it will go down and how high it will climb up nobody knows?
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)
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