The FBMKLCI’s took a beating from the resurfacing of domestic election jitters ahead of the long Chinese New Year holiday, causing the index to plunge as much as 1.4% despite gains across regional markets. Analysts said that the long weekend break as well as the impending election has probably sparked the sell-down on the stock exchange as investors locked in gains to safeguards their portfolios.
The Outlook On Malaysia Equity Market
The Malaysia FBMKLCI’s Weekly Chart Analysis is currently at a stage of critical support hovering around 1616points. Will the upcoming general election in Malaysia bring to a similar plunge back in 2008 general election despite the global rally that is happening currently? At any violation of its trend support in the coming weeks like what happened in the past in Year 2008 and Year 2011 will put our Malaysia Equity Market at a risk of further sell down. But this will be classified as a big market correction only not a market crisis. Investors who have been selling off and staying at the side lines due to the political risk factor will need to take note on the Malaysia FBMKLCI support level before making a wise investment decision. Investors who are still currently staying in the market will just need to stick to your own trading plan. Know when to cut loss and protect your capital or it will be about how much you are willing to lose. Trend Followers will need to stick to their own trading plan where as fundamentalist basically can just ignore all the market noises.
Malaysia FBMKLCI Critical Support Level To Observe
When the Malaysia FBMKLCI were to fall off from its critical current support how far can it go down to? We will need to look at its 3 main critical support in its weekly chart analysis.
1) Green EMA Support: 1636 points
2) Yellow EMA Support: 1573 points
3) Red EMA Support: 1455 points
At any support of these 3 levels will eventually bring the market to resume the bull rally in the long run. Failure to support at these 3 level will eventually bring the market to a further market plunge like what happened in Year 2008.
Those who have knowledge, don’t predict. Those who predict, don’t have knowledge
(Founder of Trend Traders Network, Equity Market Investor/Trader, Trend Follower, Financial Speaker)