With the regional markets continue to reach new highs, the Malaysia Equity Market FBMKLCI has been seen losing its momentum. What goes up must definitely need to go down in order to have a healthy price correction. But when?
Trend Following on the Malaysia Equity Market FBMKLCI:
The Short Term Trend in the FBMKLCI has yet to see a complete deathly cross yet signalling a start of short term trend reversal that will lead the market to enter into a market correction. Thou the Moving Average Convergence Divergence (MACD) has been in a state of deathly cross giving investor/trader an early signal of price correction, the confirmed trend reversal will only begin when there is a reversal of the short term trend.
Will the big funds continues to support the local index to bring it to new highs? Or a correction is just around the corner in a matter of time? Equity players have been seen profit taking and choose to stay at the side lines. The time to go for a shopping spree in the FBMKLCI is no doubt when a market correction eventually happens. Therefore avoid chasing high flying stocks as it may get oneself to stuck in the market. Practice cut loss according to your trading plan.
*Nothing Complicated. No Prediction. Just Trend Following*