FKLI Market Outlook:
A lot of investors started to believe that our market seem to re-enjoy the decoupling that we used to enjoy about a month ago as yesterday market rebounded from its day low of 1272, same went to cash as the FBMKLCI closed 8 points higher from its day low.
A lot of investors started to believe that our market seem to re-enjoy the decoupling that we used to enjoy about a month ago as yesterday market rebounded from its day low of 1272, same went to cash as the FBMKLCI closed 8 points higher from its day low.
However, in our view, our market will only have mild support and will not have what we have before – decoupling from the world financial market. The mild support comes from the expectation of the announcement on the 10th Malaysia Plan two days after. To us, this is a very small piece of fundamental news and will not have much impact towards our market in this current strong world influences environment. We will strongly advise investors not to hold long position overnight, provided it reaches certain important and strong support.
We are firmly bias towards the downside in accordance with the technical and fundamental reasons stated in our weekly report yesterday. Overnight further dropped in the DJIA was pushing the index further below the MA 200 level, indicating the CONFIRMED bears market ahead.
We are not expecting the world bourses to recover within this week ahead of the start of the World Cup. Market will remain towards downside with thin trading volume. For today, the support is seen at 1270 – 1265 levels. Slightly stronger support only is seen at 1252 level. Investors need to be more cautious (especially those holding the long position) if the FKLI is not able to support above the MA 200 level – 1271. This round of break below this level will confirm the MA 200 being convincingly breakthrough and further major correction is expected.
US MARKET
Overnight US market closed another triple digit losses, resumed its downside momentum. From technical points of view, yesterday dropped is sending the DJIA further below the MA 200, more unlikely to regain its posture above the MA 200, strongly indicating the confirm bearish market for mid to long term. (Please refer to the page 2 on the attached report for the chart).
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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.
US MARKET
Overnight US market closed another triple digit losses, resumed its downside momentum. From technical points of view, yesterday dropped is sending the DJIA further below the MA 200, more unlikely to regain its posture above the MA 200, strongly indicating the confirm bearish market for mid to long term. (Please refer to the page 2 on the attached report for the chart).
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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.
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