Last week's correction has brought the FBMKLCI to the medium-term
uptrend line, SS at 1500. The index is now hovering just below the
long-term downtrend line, RR which stretches back to April 2018. With
MACD hooked down and Stochastic RSI in the oversold territory, the index
may continue to consolidate for a while. A break below the 1500 level
could send the index to the 1450 level, which is the line connecting the
recent lows after the rally began in March.
Chart 1: FBMKLCI's daily chart as at June 19, 2020 (Source: Malaysiastock.biz)
The weakness among the blue chip stocks - especially among the glove
stocks - have not stopped the play among the 2nd and 3rd liner stocks.
In fact, small-cap stocks and tech stocks have been charging higher,
which reflects a similar trend in Nasdaq. See the charts for Dow and
Nasdaq below.
Chart 2: FBMACE's daily chart as at June 19, 2020 (Source: Malaysiastock.biz)
Chart 3: DJIA's daily chart as at June 19, 2020 (Source: Stockcharts.com)
Chart 4: Nasdaq's daily chart as at June 19, 2020 (Source: Stockcharts.com)
Based on the above, I believe the broad market may hold steady for this
week. Trading will continue to be choppy, and it will favor those who
are nimble and ruthless. Good luck!!
http://nexttrade.blogspot.com/2020/06/market-outlook-as-at-june-19-2020.html
