Important Stocks To Watch - Breakout Stocks/ Important Developments
Technical Analysis Of KLCI 29 November 2018
If you have been following the local market in Malaysia, you would have notice a lack of direction in the KLCI recently. Moving sideways up and down can be quite frustrating for the average person.
This sideways movement in the KLCI is really giving investors and traders a headache. What we are experiencing now is a volatility contraction which is often followed by volatility expansion.
Take a look at the daily chart of KLCI above. The movements in recent weeks have been smaller and smaller helping to make the index form some kind of a triangle movement.
A look at it seems to tell investors that KLCI might be forming a descending triangle. As we all know a descending triangle could hint of a bearish continuation of the previous downward move.
So far it has not broken down yet.
The last time KLCI broke below a descending triangle, it caused a wave of selling in Malaysian stocks.
This kind of environment can be difficult for investors. Perhaps staying on the sidelines while the patterns resolves itself might be a good strategy LOL.
I myself and so many other traders have learnt that its best to take trades only when many criterias have a tick on it.
For a bullish outlook to form...I would like to see a few things:
- The KLCI break above the downtrend line in the descending triangle
- A bullish 20 ma cross 50 ma happening
- Market to go back above the 50 MA (blue line)
Well, in a difficult environment its best to stay on the cautious side. Sometimes the rules help us to stay on the right side of the trend.
- Help support this page and press the Facebook Like button below. Thanks!
Join Dstockmarket's Facebook Page
Recent Articles
-
Stock Market Analysis May 2022
May 30, 22 07:20 AM
What is the market doing and what is it likely to do?
-
April 2022 Stock Market Analysis
Apr 27, 22 09:01 AM
As we enter April, will we continue to move higher or will there be a correction coming?
-
Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price
Apr 13, 22 11:46 PM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
-
Stocks At Their 50 MA And 200 MA
Apr 12, 22 09:38 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
-
Stocks To Watch - Important Developments
Apr 12, 22 09:34 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.
New! Comments
Have your say about what you just read! Leave me a comment in the box below.