Over the past 7 weeks, FBMKLCI has broken above its downtrend line at 1660 as well as surpassing the horizontal line at 1695 & psychological 1700 mark. It's poised to test the strong resistance from the horizontal line at 1725.
Chart 1: FBMKLCI's weekly chart as at Feb 15, 2017_3.50 (Source: MalaysiaStock.Biz)
I believe that our market is on track for a slow recovery from this point onward. This is based on two more charts- FBMEmas and FBM70.
As you know, FBM70 is made up of 70 second liner stocks. FBM70 has just broken above its downtrend line. It is now testing its October 2016 high at 13900.
Chart 2: FBM70's monthly chart as at Feb 15, 2017_4.00 (Source: ShareInvestor.com)
If you add in the third liner stocks (or small-cap) stocks to the second liner stocks (represented by FBM70) and blue chip stocks (represented by FBMKLCI), you will get FBMEmas. Below you can see FBMEmas has broken above its downtrend line as well as the horizontal line at 12000.
Chart 3: FBMEmas's monthly chart as at Feb 15, 2017_4.00 (Source: ShareInvestor.com)
Based on the above observations, I believe that our market is likely to continue its slow uptrend.
http://nexttrade.blogspot.my/2017/02/market-outlook-as-at-feb-15-2017.html
