Tuesday, October 21, 2014

Market Outlook as at October 21, 2014

FBMKLCI broke its uptrend line at 1830-1840 last week. To regain the uptrend momentum, FBMKLCI needs to first, comeback above 1800 and then, to climb back above the uptrend line (at 1840-1850). Until FBMKLCI has climbed above 1800, the bearish outlook will persist. Until it has climbed above the uptrend line, the bullish sentiment will not be present.


Chart 1: FBMKLCI's weekly chart as at November 21, 2014_11.45am (Source: BTX)

Looking at the indices of US markets and key European markets, we can consider ourselves 'lucky'. DAX has formed a downtrend, with a lower 'low' and a lower 'high'. FTSE, S&P500 and DJIA have all formed lower 'lows' and, if the current rebound fizzles out, we will have a lower 'high'.


Chart 2: DAX's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 3: DJIA's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 4: S&P500's weekly chart as at November 20, 2014 (Source: Stockchart)


Chart 5: FTSE's weekly chart as at November 20, 2014 (Source: Stockchart)

Based on the above, we should not be too enthusiastic in buying into the market. This market requires us to exercise a lot of self-control.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of any of the indices shown above.

1 comment:

Bn911 said...

Dear Alex, I am still wondering, in less than 2 weeks,how can the price of Padini can go down that much. With implementation of GST, it will affect consumption but Padini's target market seems good as it is towards the middle income market. Will you think it is a good chance to accumulate Padini at current weakness?