So far the Malaysian market is doing quite well with quite a lot of stocks climbing up nicely. There is always a bull market somewhere in the stock market.
Despite the relative weak performance of the KLCI compared to major world markets, we should always remain confident that some stocks in the Malaysian market is always making new highs.
Stocks like Sunway Bhd, YTL Power etc are good examples of stocks that are in an uptrend and that are the kind of stocks one should focus on.
As usual for those who have been following my writings over the years, I will put everything for the month in one place. Please come back and refresh.
I will also put the analysis that you guys ask in my Telegram group here so you can look at them again later.
26 February 2024
23 February 2024
22 February 2024
20 February 2024
13 February 2024
So far the KLSE is still doing as I expect. Sometimes it is a matter of simply following the trend. Once the stock or index has established an uptrend, it is good for us to be simple and just follow the trend until it changes.
When a stock or index is in an uptrend, the only way to make money is to buy breakouts, dips and continuation.
To be able to spot these you will need a lot of skill and experience because if you are not skillful you can still lose a lot of money in a bullish market.
The other thing that is extremely important is for you to have a trading strategy and also the ability to be very patient to wait for your setup.
Below are some stocks that my readers and friends in Telegram has asked me to analyze.
The summary is this:
If the stock is above its rising 20 MA, 50 MA and 200 MA, it is in an uptrend and you should focus on such stocks
If the stock is below its declining 50 MA and 200 MA, it is best to stay away from these kind of stocks. No point trying to be smart and bottom fish.
Why focus on bottom fishing when there are some stocks that are making an uptrend? Better to make money the easy way than the hard way
If you have been reading my analysis for sometime I always tell my readers and friends never to touch a stock that is below the 200 MA. It is always better to buy a stock that is in an uptrend
Will try and update as regularly as possible. This page will be updated regularly so come back and refresh the page for more updated analysis.
3 February 2024
I have always found that annotating on the charts is a good way to present my analysis and ideas.
Sure there are benefits of writing the words on the page as well.
But nowadays, I am a bit lazy to write and write.
Furthermore, annotations on the chart are easy for the eyes. So while I will write a bit on the pages I figure out that it may be best to write and annotate more on the charts.
Let me begin with looking at the monthly chart of KLCI. Since we are starting the new month in Feb 2024, it is always a good idea to take a look at the KLCI from a long term perspective.
Well, if you compare it to the stock market chart of the S&P 500, you will realize that our Malaysian stock market is not doing as well as them.
It is always a better idea to invest in markets that are uptrending.
One good thing about the monthly chart of the KLCI is the index is trying to break above a monthly downtrend line.
The break of a downtrend line hints of a change in trend from bearish to bullish.
In this case, it will be a long term trend change if the break above monthly downtrend line materializes.
The above is the weekly chart of the KLCI. Although it may be making a weekly cup with handle, the amount of resistance overhead kinds of negate the power of the cup with handle.
There is so much of a resistance that needs to be absorbed and it won't be easy to reach the target in a nice smooth ride up.
What I do like is the fact that there is a monthly bullish cross where the 20 MA crosses back above the monthly 50 MA at a consolidation area.
The top of the consolidation will be an area of support which you can see in the daily chart below.
I have coloured the area of support in green. It was a hard time for the KLCI to go above this area. What was once a resistance area is now a support area according to the rules of support and resistance.
Recently, the daily chart also broke above a small consolidation box which I like to use as a gauge of the health of the KLCI.
Since the 20 MA is rising and there is a box, as long as the KLCI stays above the top of the consolidation box, we should continue to be bullish bias in the daily chart.
The rising 50 MA and rising 200 MA also points to mid term and long term bullishness.
Below are 2 charts that a member in my Telegram group ask to analyze.
Hope it helps and if you have any questions just drop a message in the comment below.
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