The result of multiple years of political turmoil in Malaysia

 I have just typed out an article on MYR during the weekend titled Malaysians are getting poorer...?, Then I saw this guy kao bae kao bu (cry father cry mother) on market opens in Malaysia. 

This stirred my interest in this index today, so I took a look.

Fig 1. KLSE Daily Chart

For this analysis, I use the daily chart as it shows a more detail picture of the index. Seems like the market really did not like Harapan, it continued to head south the whole time that Harapan in power, only to be saved by Covid-19. 

Unfortunately, the uptrend was short lived and ended by the end of 2020. In between 2020 till the first quarter of 2022, a head and shoulder is completed, neckline not only broken but also retested before it continued its downtrend.

There are 2 set ups I can use to measure its support levels, zig zag which I consider not so appropriate, and expansion that I believe is a better choice.

Let's go for my favorite projection on thee "zig zag".  Support for KLSE at between 1,484 to 1,400. It has so far breached 1,484 and heading for 1,400. 

Using Expansion, it would be more for the minimum objective of the head and shoulder formation.  the support level is much lower at between 1,339 to 1,255. This is very close to the 2020 bottom.

I really do not want to go further on this. In a much bigger set up with the high of 15th April 2018, KLSE might sink all the way to 1,000. I would prefer to go for the more immediate support or resistance, they are more relevant.

If you zoom in on the chart (using finance.yahoo.com, you will find continuous gap down, meaning that there is momentum downward. Tendency of reaching its objectives is high for the time being.