Our market is shaken by reported huge losses in 1MDB and higher government debts exceeding RM1 trillion and counting. This is a quick take on the market outlook. I believe FBMKLCI will likely test the horizontal support at 1760 and then the intermediate uptrend line at 1750. See Chart 1.
Chart 1: FBMKLCI's weekly chart as at May 24, 2018_9.30am (Source: Shareinvestor.com)
Depending on news flow, the market selldown may break the above-mentioned supports and send the index all the way to the long-term uptrend line support of 1700. We will see whether this long-term uptrend line will hold or be violated.
Chart 2: FBMKLCI's monthly chart as at May 24, 2018_9.30am (Source: Shareinvestor.com)
A few blue chip stocks look quite attractive even as I am writing this post. They are Maybank at the uptrend line of RM10.00 (it violated that momentarily) and Tenaga at the uptrend line of RM14.40-14.50. Exercise careful discretion in your investment. Good luck!