Market Outlook as at Oct 27, 2009

Market Outlook as at Oct 27, 2009: "The market is undergoing a corrective phase, which may see the FBMKLCI testing the 20-day SMA line support at 1243 (similar to the last 2 correction denoted as 'B' & 'C'). If this level failed, then the KLCI may test the 50-day SMA line support at 1211 (see the correction in June & July, denoted as 'A').


Chart: FBMKLCI's daily chart as at Oct 26, 2009 (Source: Quickcharts)

After seeing a few uptrend line violations among blue chips & near blue chips, I have a feeling that the market may be nearing a temporary top. However, the relatively bullish undertone in the market is such that the price of these stocks has yet to drop significantly, but has instead been moving in a sideway fashion. Some of the stocks that had violated their uptrend line are Astro, Axiata, Boustead, Unisem and WCT.

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