FBMKLCI Showing Sign Of Weakening. "Selling Into Strenght".

These few days I have been watching how our index is performing and where the FBMKLCI will bring us to? Frankly from my point of views, our share market sentiment is still not strong enough with the MACD indicator almost flash selling signal.

The MACD not yet cross but definitely there are some danger elements been created now with the MACD histogram also show more weakening signal day by day. Can we call it that the FBMKLCI is still consolidating???

These few days movement is very important to determine where our FBMKLCI is heading to. Any opportunity arise is to "Sell on Strength" rather than "Accumulate on Weakness".

No doubts the FBMKLCI still stay above 200 days moving average, still a careful approach need to be implemented in order to prepare for our self if the FBMKLCI has lost its momentum. At these moments some of the world equities market still in a bullish position with all the indicators still show positive sign. 
 

These will eventually help the FBMKLCI keeping up its momentum. The current support for the FBMKLCI stand at 1,836 point with strongest resistance still stand at 1,858 point. Breaking down 1,836 point will bring the FBMKLCI to create lower low.

Can FBM KLCI Reach Its Old Time High of 1,896 Point ?

Based on the chart reading, the KLCI has reach it first target - 1,845 point and the second target - 1,858 point as well. At these moments based on the MACD reading, KLCI might take a hold to adjust its recent upwards after breaking the most strongest resistance level of 200 days moving average at 1,822 point.

 

 

These 200 days moving average would turn into a major support at these moments. Basically if we analyst the current share market sentiment, I would rather say the sentiment didn't picture the whole share market prices hence I would say it is not a healthy market to trade unless we are very sure on our favourite counters.

 

Most of the counters in Bursa Malaysia still trade below 200 days moving average. Hence I would rather say that a careful trading technic need to be implemented in order to trade in this share market.

 

Looking at the overall picture, the whole world share market movements currently at bullish phase with the Dow Jones Industrial Average also showing some promising signal. With the world sentiments turn bullish, will it help FBM KLCI to move higher to reach its old time high of 1,896 point ? 

KLCI Is Moving Towards 1,845 Point? Overall Share Market Sentiment Still Dull.

It has been about 2 years from today I didn't write anything or post anything about our Malaysian share market. But today I will try my best to share my personal view on how our Malaysian share market is doing right now.

 

These few weeks we can see the index have try its very best to overcome the 200 days moving average and indeed last few days the index have managed to stay above the critical level of 200 days moving average at 1,822 point. 

At these moments the momentum are favouring the index to climb up to reach another resistance level of 1,845 point but overall individual stock didn't show any sign of a healthy share market environment.

 

We might be seeing the index keep on creating new high in the process from the previous low 1,774.30 point (16.03.2015) but still most of the individual stock prices didn't perform at all. Overall the share market sentiment still look dull. 

 

It is not an overall share market movement. It is merely some index stocks pushing up the index higher and higher with some penny stock moving here and there but we cannot say that this is a false alarm in their movement because the indicators are showing some positive sign at these moments.