Our market looks poised to go higher. FBMKLCI is on the verge of breaking above the downtrend line, RR at 1695. At the time of writing, FBMKLCI is at 1693.
Chart 1: FBMKLCI's weekly chart as at Aug 18, 2016_11.00am (Source: ShareInvestors)
The small-cap stocks have rebounded off their lows. Now many have broken above their downtrend lines. If we look at FBMSCAP, FBMACE and FBMFLG, we can see that all three indices have broken above their respective downtrend lines.
Chart 2: FBMSCAP's weekly chart as at Aug 18, 2016_11.00am (Source: ShareInvestors)
Chart 3: FBMACE's weekly chart as at Aug 18, 2016_11.00am (Source: ShareInvestors)
Chart 4: FBMFLG's weekly chart as at Aug 18, 2016_11.00am (Source: ShareInvestors)
Based on the above, I think the market is likely to continue the gradual recovery in the next few weeks. However, you need to watch out for the upcoming holidays on August 31, September 12 & September 16. I believe trading could be tricky in mid-September as two of these holidays will fall in the same week. Good luck!!
http://nexttrade.blogspot.my/2016/08/market-outlook-as-at-august-18-2016.html
