Anatomy of a bubble: Malaysia's Ringgit.
Updated
Clear trend seen in the crash of Malaysia's ringgit, and can be described by the famous "anatomy of a bubble".
It is driven by psychology more than the low oil price, or the corruption of Malaysia's Prime Minister Najib.
Ringgit instead strengthened in the early days of the oil crash and it took almost 1/2 a year before the common folks start realizing and dumping the currency.
Will Najib's implication in IMDB corrpution issue and further drop in oil cause further weakening in Ringgit? My guess is no.
Those who have sold ringgit have already done so... and the amount of sellers are decreasing.
Near term targets:
The caption in blue is the common sentiment I came across from people in Singapore.
Weekly trend:
It is driven by psychology more than the low oil price, or the corruption of Malaysia's Prime Minister Najib.
Ringgit instead strengthened in the early days of the oil crash and it took almost 1/2 a year before the common folks start realizing and dumping the currency.
Will Najib's implication in IMDB corrpution issue and further drop in oil cause further weakening in Ringgit? My guess is no.
Those who have sold ringgit have already done so... and the amount of sellers are decreasing.
Near term targets:
- 2.81
- 2.72
The caption in blue is the common sentiment I came across from people in Singapore.
Weekly trend:
Note
Took a little longer than expected, is is about to correct down from the rising wedge.
Could this also be the signal of Brent/WTI bottoming at $40?
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