After six months hiatus, here I am again here I am again. My analysis will be as simplify as possible and avoiding all those weird mathematical led indicators. It will be more on price action and the unsophisticated moving average. Maybe I will throw in the standard RSI and Stochastic indicators.
Let start with Bursa Malaysia FBM KLCI index:
The current downturn or market correction, since the index is still above the 50 and 200 moving averages started on July 8th with a hanging man candle. A engulfing candle tag along that also imprinted a conventional Outside Bar (OB). A break to the low of OB suggested a time to short the market. The breakaway carried the index passed the 10 day (10d) moving average (MA) and found support at 20d MA. A small bullish candle follow but the 10d MA act as resistance. A small bear candle was formed and the candle is a NR 7 bar (i.e the high and low price range is narrower than any prior 7 days. There was a break of the low of NR 7 candle and price is expected to fall further.
As expected, the index drifted lower looking at support at 1562 and the 50d MA. For the coming days I am looking whether the support will hold.
