Running through the various charts for our local market, we can see that the corrective rebound off the low in August is over. The downtrend is likely to continue and this may send the market back to the August low.
Chart 1: FBMKLCI's weekly chart as at Dec 14, 2015_10.00am (Source: ShareInvestor.com)
Chart 2: FBM70's weekly chart as at Dec 14, 2015_10.00am (Source: ShareInvestor.com)
Chart 3: FBMSCAP's weekly chart as at Dec 14, 2015_10.00am (Source: ShareInvestor.com)
Chart 4: FBMACE's weekly chart as at Dec 14, 2015_10.00am (Source: ShareInvestor.com)
Chart 5: FBMFLG's weekly chart as at Dec 14, 2015_10.00am (Source: ShareInvestor.com)
Looking at the monthly chart, I believe that FBMKLCI will have a very strong support at 1540-1550, the middle line of the upward channel (B-B1).
Chart 6: FBMKLCI's monthly chart as at Dec 14, 2015_12.30pm (Source: ShareInvestor.com)
US stock markets are at a critical juncture this week. Two of the main market barometers, DJIA & Nasdaq are set to test their respective uptrend line. If S&P500 is a guide, these 2 indices are likely to break below their uptrend line and set the stage to revisit their August low.
Chart 7: DJIA, Nasdaq & S&P500's daily chart as at Dec 14, 2015_10.00am (Source: Stockcharts)
In Europe, the 3 main stock barometers (FTSE, DAX & CAC) have broken their intermediate uptrend line and are set to revisit their August low.
Chart 8: FTSE, DAX & CAC's daily chart as at Dec 14, 2015_10.00am (Source: Stockcharts)
In Asian, HK and Singapore markets continue to drift down. Nikkei is likely to join them after breaking below its intermediate uptrend line last week.
Chart 9: HSI, STI & Nikkei's daily chart as at Dec 14, 2015_10.00am (Source: Stockcharts)
All in all, the stock markets worldwide are looking rather gloomy. This will add to the continued weak sentiment in Malaysia.
FBMKLCI - Market Outlook as at December 14, 2015
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