As per what I have written in the previous write-up FBMKLCI: Now what? - A detailed technical analysis
(Jan 20, 2018), FBMKLCI managed to stay above the last Friday closing, meaning that the last minute buying on last Friday was a legitmate market movement.
The chart above pretty much summed up what has happened to FBMKLCI in these few days.
In essence, FBMKLCI has retested the last Friday closing twice (today and yesterday), it formed two candles with lower bodies.
What does this mean? FBMKLCI refuse to break down, hence it wants to rally higher, thats why the two attempts to break down were denied.
Then some people may try to point out that MACD looks bearish and RSI is overbought as well.
The MACD movement looks more like a tricky indicator trying to confuse everyone. The bars can be going down but the suddenly reverse to the upside. Just because you are seeing a decreasing MACD bar, it may not necessarily mean everything will turn bearish again. In fact I only rely MACD for only long term chart (weekly and monthly) but not for daily chart.
For the RSI, as I mentioned many times before, the RSI can remain overbought indefinitely especially during strong uptrend. RSI will not work perfectly.
Look at the highlighted sideway movement carefully, what's your judgement on this sideway movement.
For me, it is a very bullish signal to me because after rallying for more than 100 pts, FBMKLCI don't even bother to break down.
For the sake of formalities, FBMKLCI is going sideways as a mild correction.
Why is this the case? It's because there is strong buying pressure to support the FBMKLCI.
Summing up, don't be at the wrong side of tide, don't be fooled to become bearish when it is time to be bullish.
When all the analyst are warning people to be cautious, or even warning of overheated market, all the bearish sentiments painted in the media only serve a purpose: to erect a wall of worry.
Market climbs over a wall of worry, so don't miss the opportunity.
Here are some of my previous write-ups for your perusal:
FBMKLCI: Now what? - A detailed technical analysis
(Jan 20, 2018)
Reverse Technical Analysis: FBMKLCI throwing smoke bomb to induce maximum fear.
(Jan 18, 2018)
FBMKLCI engine is still warming up, more bullish rally to come
(Jan 13, 2018)
FBMKLCI one piece of puzzle left before confirming 2018 bull market
(Dec 30, 2017)
FBMKLCI quietly embarking a strong uptrend!
(Dec 27, 2017)
FBMKLCI rally was just an appetizer
(Dec 21, 2017)
FBMKLCI staging comeback boat, profit taking overdone.
(Dec 19, 2017)
FBMKLCI early sign of bullish uptrend.
(Dec 13, 2017)
Triple reasons why FBMKLCI will be very very bullish.
(Dec 09, 2017)
http://klse.i3investor.com/blogs/Tech_Watch/145205.jsp
