FBMSCAP (Small Cap) Daily & Weekly Chart (Week 3/2015)
I am putting the FBM Small Cap index chart side by side, with Weekly chart on the left and daily chart on the right. The weekly chart has shown 2 weeks of white bar (positive) with MACD showing 5 consecutive weeks of green bar, indicating the uptrend. The daily chart on the right shows the index is touching the 50 days Simple Moving Averate, while MACD line is just about crossing zero level. This is indicating a mini bullish coming up in the market.
I can only say that the short term uptrend is still intact but it is by no mean a bullish market yet. It still has to recapture the loss ground and climb to around 17800 level before it is considered a successful resume of previous bullish trend. With the current 15700 level, there is another 14% to go.
I think this might be the opportunity to take short term profit for whoever took position early this year if some profit has been made. Or, for those who were “stuck” in Oct, Nov purchases last year, the rebound may provide opportunity to cut your position.
All eyes on the ECB announcement and anything that is lesser than the anticipated full scale bond buying QE will probably disappoint the market and that will means a even choppy week ahead.