As at 12.05pm, FBMKLCI was down 8 points to 1815. The scoreboard showed 180 gainers to 730 losers. Many investors who wanted a correction after a strong rally, seem to have second thoughts. It all goes to show that no one wants correction. Period!
Looking at the daily chart, I believe that this correction has gone far enough to whine off excessive bullishness that we saw over the past 2 weeks. I believe FBMKLCI will soon find support at the 10-day SMA line at 1807. Failing which, it may test the psychological 1800 level. If the index is going into its next upleg, that market should stabilize by then.
Chart 1: FBMKLCI's daily chart as at Jan 11, 2018_12.05 (Source: Shareinvestor.com)
Looking at the weekly chart, we can see that FBMKLCI has broken above the intermediate downtrend line, RR that stretches back to 2014. This breakout is the reason for the strong rally in the past 2 weeks. The correction has set in after the index hit the parallel line, R1-R1 at 1820.
Chart 2: FBMKLCI's weekly chart as at Jan 10, 2018(Source: Shareinvestor.com)
Based on the bullish breakout of the intermediate downtrend line, R1-R1 and my earlier market expectation, I think that this correction is an opportunity to buy or add to your position to ride the upleg. Good luck!