FBMKLCI - Bull market is coming!

Forget about the market crash, cause financial market will not crash this year!

In line with the Wyckoff accumulation schematic, the selling of FBM KLCI was well absorbed and hence was accumulated since the selling climax in Aug 2015, which indicates FBM KLCI has successfully formed a bottom for the 2 years correction (Jul 2014 to Aug 2016).

Today, FBMKLCI managed to close above 1681 to violate the downward trend-line shown in the figure.

Given that FBMKLCI is now trading well above the 200Sma, FBMKLCI is poised to regain strength to turn bullish again.

This is the weekly USD/MYR currency chart. Just to clarify in case if you are unfamiliar with currency chart, up move in USD/MYR means Ringgit is weakening, equivalent to US dollar gaining strength, and vice versa.

In the chart above, Ringgit has weakened against US dollar from May 2013 to Oct 2015.

The chart above clearly highlights the Bump and Run Reversal chart pattern formed on USD/MYR currency pair. This means the weakening of Ringgit against US dollar has reached an end for intermediate to long-term (1 year), and Ringgit has successfully retested the middle trendline in June 2016.

The is the USD/MYR chart but zoomed in onto the daily candlesticks of USD/MYR chart spanning from Jul 2015 to Aug 2016.

As we can see, the downward trendline for the USD/MYR is getting steeper, so we can expect an accelerated sell down of US dollar against Ringgit in future. 

So what does all these currency charts suggest?
These signals from the currency charts conveyed a clear message that Ringgit will strengthen moving forward.
So how does all these related to FBM KLCI and Malaysia stock market?

If Ringgit were to strengthen against US dollar, it means the foreign funds will be revisiting our market soon after the 2014 and 2015 capital exodus, and we will see the return of bull market.


Disclaimer: This is an expression of personal opinion of the author, the author is not responsible for anything happened to the readers after they read this post.

Source : http://klse.i3investor.com/blogs/Tech_Watch/102033.jsp

My comments: I mentioned how 2016 was going to be a mouse-trap year for investors. It will be a year full of surprises! I don't know what is happening but will use the "bull market" to dispose off slowly what I have when my TP is reached. Good Luck to all.

October 31 : 5 Things to know

1. Today is Halloween Day in the US. Lots of fun where people wear costumes and do pranks on each other. Some people think today the spirits will be released and allowed to roam a day before All Saints Day on November 1.

2. This week the KLCI Index dropped every day from Monday to Friday. Index seems very bearish (yet) the small cap and penny stocks rallied. Small is beautiful they say. Is November going to be like this too ???

3. Oil prices have rallied despite all the oversupply, strong USD, OPEC no action blah blah blah. Oil post first positive week in 3 and gain 4%. Oh because of this, when you go out later, please pump more petrol for your car. You can expect an increase in petrol prices tonight. Ha-ha.

4. The US rate hike story continue again ...this time need to watch the Dec 16-17 Fed meeting. Still a month and half away. There is a 50/50 chance Fed will increase the rate to 0.25%. It means the USD will be strong and RM will remain weak, for now.

5. XOX must be the hottest stock of the month of October. It keep going up despite 2 UMA from KLSE in a month! It look like a strong stock pump and dump to me. Some, not all, criteria, for a pump and dump are there.


GA