Our market had 4 good days last week. FBMKLCI rose ~50 points from 1601 on Tuesday to 1650 on Friday. The gain was brought on by selective buying of blue chip stocks, especially Tenaga, PBBank, Axiata and Digi. However, we saw limited participation by retail players, which explains why the scoreboard remained unimpressive.
Looking at the weekly chart, we can see FBMKLCI has yet to cross the 2 lines connecting the troughs/lows from 2010 till today. The lower line connects the extreme troughs/lows while the upper line connect closing index.
Chart 1: FBMKLCI’s weekly chart as at May 31, 2019 (Source: Malaysiastock.biz)
The immediate resistance for FBMKLCI will be the lower of the 2 lines connecting the last 9 years’ troughs/lows, at 1665. The next resistance will be the upper line of the downward wedge, ABCD at 1675. For FBMKLCI to break above these 2 resistance levels, we need market participation to broaden out next week. Since it will be a short trading week – with Tuesday being a half-day and Wednesday & Thursday being holidays – I believe the market will be very quiet.
Chart 2: FBMKLCI’s daily chart as at May 31, 2019 (Source: Malaysiastock.biz)
As noted in the previous market outlook, a correction in the U.S. markets could help to channel funds to emerging markets, such as ours. You may use the quiet market to do some bargain hunting. Good luck!
Here is toppaypal forex brokers list