FBMKLCI broke below the medium-term "uptrend line" at 1705 on Feb 24. MACD has also crossed below the MACD signal line, indicating further downside.
Chart 1: FBMKLCI's daily chart as at Mar 1, 2017 (Source: MalaysiaStock.Biz)
On a longer time period (Chart 2), we can see that past breakdown of the medium-term uptrend line had led to sustained downtrend. Will this time be different?
Chart 2: FBMKLCI's daily chart as at Mar 1, 2017_11.11am (Source: MalaysiaStock.Biz)
Looking at the monthly chart, we can see that MACD has crossed above the MACD signal line. I have denoted the past 6 occasions when this has happened (A, B, C, D, E & F) and in all these occasions, the market has gone higher.
Chart 3: FBMKLCI's monthly chart as at Feb 28, 2017 (Source: Shareinvestor.com)
In my opinion, we are seeing short-term weakness which may not be very severe because the market may be set for the continuation of its long-term uptrend.
http://nexttrade.blogspot.my/2017/03/market-outlook-as-at-march-1-2017.html
