Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.
Here is the analysis for the Malaysian stock market for the month of February 2020. Updated almost daily. Press the refresh button daily for the latest analysis.
Well, it looks like the bearish trend is still in progress. 60 min chart is still negative. That is why we should continue to be bearish or cautious on the Malaysian stock market.
If KLCI drops below today's low again, then it might challenge the previous low.
Follow the trend. When the trend is down, do be careful.
KLCI is still in a bearish 60 min trend.
The pressure is still downward which is why it is struggling to go up. It tried to go above the downtrend line but the downward pressure is still making it hard for it to rise.
Perhaps the area to watch is the horizontal support line. If it drops below here then there could be more weakness. But if it can manage to stay above here then it might bounce back up.
If you take a look at the 60 min chart of the KLCI, you will notice that it is below its 60 min 200 MA, 50 MA and 20 MA. The faster moving averages are also below the slower moving average.
This means that the 60 min 200 MA is above the 60 min 50 MA and the 50 MA is above the 20 MA. This is usually a picture of very bearish trend.
KLCI also recently had a 60 min bearish cross in the 20 MA and 50 MA.
Therefore, there is quite a lot of bearish pressure playing here. In this case, one should continue to be very cautious of the Malaysian stock market as it is not good to play against the trend.
If KLCI drops below today's low then there could be a 60 min bearish continuation and the KLCI might drop further and perhaps challenge the previous low.
On the other hand, despite the bearish trend, KLCI still finds it a bit slow to drop. Perhaps some hidden strength? Well, we will have to take a look at the downtrend line.
If KLCI manages to go above the downtrend line, then perhaps there could be a bounce upwards. But do remember the trend is still bearish and therefore one should remain cautious.
Time really flies doesn't it?
We are 2 weeks now into the month of February. I must say that the KLCI is in a challenging environment right now. From a daily perspective, it is in a downtrend and therefore it is not easy to play stocks or the index in such an environment.
Therefore, one should always be on the lookout for the perfect pattern in this environment. Do not simply enter but have the patience to wait for the right chart pattern to form.
I must admit it is difficult to analyze the index when it is in a bearish market.
Sometimes the bounces can be fast and when it drops, it can be fast as well. Best to always play a nice uptrending stock or index.
The 60 min chart of the KLCI above shows that it is about to have a 60 min bearish cross. Usually a bearish cross can give us hints that the market is about to fall further.
It has already broken below a 60 min uptrend line. When the index broke below the 60 min uptrend line, it showed weaknesses.
It also formed a rounded type of pattern and this might hint of further weaknesses.
If KLCI drops below the low of today's trading, then it might go lower and possibly meet the previous low. With the fears of Coronavirus gaining steam again because of the massive jump in China's figure, it might put downward pressure on world markets especially Asian ones.
Do note that the KLCI is still below its declining 60 min 200 MA.
This is a sign of weaknesses and will put downward pressure on the market. Therefore, one should still be cautious about the Malaysian market.
The KLCI is still below its declining 200 day moving average. This is an indication of a bear market.
If you take a look at the chart above, you will also be able to see that it is below the declining 20 MA and 50 MA. This is quite a bearish situation.
Unless the KLCI is able to go back above the 20 MA and also the 50 MA, then one should be very cautious of this market.
Currently it is hovering at the resistance area. It broke down of the previous low around 1550. When the index broke down below that support area, support becomes resistance.
Feb 21, 20 08:15 AM
My analysis of the US stock market for the month of February. Updated almost daily.
Feb 21, 20 08:11 AM
Technical outlook for Frontken's stock price and stock chart.
Feb 21, 20 08:08 AM
A technical analysis of OKA Corporation's stock chart. Is the stock in an uptrend or downtrend and what should you do about it.
Feb 21, 20 08:06 AM
Here is the analysis for the Malaysian stock market for the month of February 2020. Updated almost daily.
Feb 12, 20 11:00 AM
Technical outlook of MMS Ventures.