KLCI/FTSE Bursa Malaysia - Wave/Trend AnalysisWe are in the current horrifying pandemic which puts most businesses at an unhealthy level. Most commercial projects are not moving especially in Construction Industries. Most traders are worrying that their investment in Bursa Malaysia will lead them to losses or maybe book yourself a seat to dive straight to the ocean.
Through my analysis, I don't see it as anticipate problems. Generally speaking, the Malaysia economy is still in a good shape, I'm not saying it is good, not that bad either, but nothing to worry about if you would like to start to invest in the Bursa Market.
The current KLCI price is between 1460 ~ 1480 as of November 2nd 2020, and yes, price will go even lower, and it is not because of bad business but rather bad politicians that screw up the foreign investor confidence, when I say politician, I meant both the government and oppositions.
Let us hop into the conclusion. Well, I am looking at the most, the price will go down to 1400 range (Target 1) or 1290~1300 range (target 2) before shooting up into the recovery of our economy, and this must be due to:
1) The introduction of Covid 19 Vaccine worldwide (Most probably will be supplied by end of 1st quarter in 2021)
2) Changes in Malaysia's political rulers through a valid and legit process.
3) 5G which includes the construction of telecommunication structures in Malaysia.
If you are looking for a long term trade, then next year might be the year. If you are a Day-Trader, there are a lot of stocks that you can look up to. Downtrend? Bear Market? no worries, trade when the stock is doing correction. :)
