Market Seems To Have More Potential To Move Higher ?

Sarawak State Election has passes by but the FBM-KLCI reacted normally against the election results. Basically if we take a look on the Malaysian share market movement, we can assume that our share market right now are moving side way. It would be better for the FMB-KLCI if the turnover can reach towards 2 billion shares a day.

If we take a closer look we might have some opportunity ahead. What does it means that we might have some opportunity ahead? If we dare to accumulate right now (not every counter) we might have a chance to look for an upper trend ahead. How big is the trend? That one I don't have the answer but my outlook was based on some indicators appears recently this week.

It was based on some few speculation counters showing some indication of moving upwards but how strong they can move forward will depend on the overall sentiments. Overall world equities market are faring very well especially the Dow Jones Industrial Average. With the current Dow Jones momentum at these moments, it might help the current local share market sentiment as well.

This is just my assumption and my point of view and we cannot take it as it will happen in the first place (moving up) but for sure the month of May is nearing and we have to stay alert all the time. Based on previous record, basically in the month of May (maybe middle or end of the month) was not a good time for the share market. This is just an assumption only.

Another advice from my point of view. If we did accumulate any of the shares and all the sudden there was an announcement of 13th General Election, my suggestion is to unload all those shares that we brought for speculations.

Looking at the chart right now, we can foresee that the FBM-KLCI is staying around in between 1,520 points and 1,543 points. If the FBM-KLCI still manages to stay above 1,520 points, we still more rooms to move on. If the 1,520 points being taken out, then we have to re-adjust our point of view.

The Bulls Are Coming Back?

The Malaysian share market still looks very strong. We are having rotational movement among the speculation counters with some good counters also moving to help and push the FBM-KLCI higher. Since the Japanese earthquake crisis until now, indeed the Bulls are coming back to take over the Bears.

Seeing at the chart, the FBM-KLCI might have the ability to break the recently new high of 1,576.95 points set on 06/01/2011. At these moments the FBM-KLCI might be hovering around before move even higher. We can see that the turnover or the volume done for the FBM-KLCI is improving and this really help the whole share market sentiments.

Any correction will be treat as an opportunity to accumulate. From my point of view the FBM-KLCI might stand strong until the end of this month. In the coming month of May it is hard to tell. Usually when the month of May arrive the share market won't perform very well. Either middle of May or at the end of May. This is just a statement and we cannot take it that it will happen when the time has arrived.

The most important element right now we must monitor whether the FBM-KLCI is able to cross their all time high. Able to do so will bring the BIG BULLS charging back. The Dow Jones Industrial Average right now is hovering around their previously high and it is important to watch them whether they are able to penetrate their recently high of 12,390 points set in month of February 2011. If the index is hovering around and move backward then we must see how the FBM-KLCI will act on it.

With the Sarawak state election atmosphere surrounding around the Malaysian share market, we must be well prepare on the upcoming results from the Sarawak state election. Anything can goes wrong on the Sarawak state election. If the Barisan Nasional lose, it will bring very big effect to our share market.

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.