Regional down 2% to 3%. It was a negative tone throughout the day on talks of China tightening monetary policy, North Korea geopolitical concerns, falling commodity price. Without fresh positives, mkt tilts to the negative side ahead of earnings report.
Despite weak ringgit, Fbm/fkli very resilient, maybe political premium?. Mkt recouped some losses after 4.00pm as players decided to keep the mkt in range following European +ve actions.
FBM’s gaming and plantation sector were weakest today
Fkli near term uptrend outlook is over due to a lack of sustainability power today. While the mkt is still far from being bearish, I think the mkt will consolidate in the near run and at this point its downward-bias range – coz below 1070, below SMAs and below the newly establish 2-week old downtrend line.
Downward risk is represented by the “ascending triangle” ( red lines)
If your strategy is to take position in the direction on the major trend, probably it would be awhile before you can create fresh long.
Nice blog.Interesting.
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