Malaysia Futures Market Review – FKLI at 14 Jan 2011

There is no doubt it was a strong market rally for quite sometime now. The question that we are asking is that when will the stock market pause and have a good and healthy correction to its uptrend? Personally, I believe that the market has more upside in the mid term to long term view. As for short term market outlook on hourly stock chart for FKLI Spot Month (Malaysia Futures Market), we could see that the market had been rallied to the new high at 1579.5 (projected based on multiple Fibonacci retracement lines) before its short term target for correction down to 1555 before rebounded back to 1575.5. Please be aware the rally back to 1575.5 was actually a bear flag chart pattern forming. As of yesterday, the bear flag was broken, and we could expect to see more correction for FKLI and KLCI market for a short term market review before any healthy uptrend can continue. My first projected target based on Fibonacci would be at 1543 points.