For the whole last week trading and before any announcement that Dubai World is facing a financial difficulty, our Malaysian share market has started to move down. Although the Dow Jones Industrial Average manages to create new high but our share market (most of counters) is moving against the real trend.
From here we can see that the share market is getting weaker and weaker and if we check most of charts, what we can see is most the counters are moving slowly towards south and it is very bad. Not only they are moving towards downwards but they also created new low.Dubai World crisis maybe the beginning of world financial crisis. But still we don't know the level of the damages might hit these regional markets. It is still too early to tell but this crisis might be the turning point or an excuse for the world equities market to move down after been moving up since the beginning of March 2009 until down. It might be the beginning of a downtrend.
Right now 1,230 points will be the next supporting level for FBM-KLCI. If this level been taken out then we would have to wait at the next supporting level at 1,200 points. If 1,200 points also been taken out, then we would have a new beginning of a downtrend.
These few days we might have some mild technical rebound as the prices have been moving down for quite some days already. Just watch out for any opportunity to occour. We might gain something from this technical rebound. Right now it is not a good time to buy for long.
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