Another very tough day for FTSE Bursa Malaysia KLCI (.KLSE)
Bursa Malaysia got off to a weak start on Thursday with the FBM KLCI falling more than 0.8% as Petronas-linked stocks and Public Bank lost ground.
At 9.16am, the KLCI was down 13.63 points or 0.85% to 1,590.11. Turnover was 270.72 million shares valued at RM160.58mil. There were 81 gainers, 328 losers and 171 counters unchanged.
Asian shares were stuck in the red amid worries the China-US trade conflict was fast morphing into a technology cold war between the world’s two largest economies.
Japan’s Nikkei slipped 0.5% in early trade, while South Korea lost 0.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.01% to hover just above a 16-week trough. E-Mini futures for the S&P 500 edged down 0.17%.
Kenanga Research said the KLCI was still on a downward trend and there was no technical indicator that shows a potential reversal was at play.
“From here, continuous global negative news and overall weak investor sentiment will likely see the index head towards its supports at 1,585 (S1) and 1,570 (S2). Conversely, resistance can be identified at 1,630 (R1) and 1,650 (R2) if there is unexpected positive news flow,” Shayne Heffernan, CEO and Founder of Heffx said in a note.
Petronas Gas fell the most, down 54 sen to RM15.98 while Petronas Chemical was down 41 sen to RM8.41. fell two sen to 26.5 sen in active trade, Sapura Energy and Barakah lost 1.5 sen each to 29.5 sen and 5.5 sen while Bumi Armada shed 0.5 sen to 18.5 sen.
Public Bank lost 16 sen to RM22.32.
Pos Malaysia fell 11 sen to RM1.47 after posting large losses while UMW gained nine sen to RM5.36.
Vitrox lost 12 sen to RM6.90 and MPI 10 sen to RM9 but Mi added six sen to RM1.66.
BAT rose 62 sen to RM34.06 and Nestle 50 sen to RM146.80.
SAM Engineering gained nine sen to RM8.28 while Top Glove advanced six sen to RM5.11.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,644.41.
The projected upper bound is: 1,623.28.
The projected lower bound is: 1,577.95.
The projected closing price is: 1,600.61.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 65.1130. This is not an overbought or oversold reading. The last signal was a buy 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 36.95. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 4 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -84. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -1.870 at 1,601.870. Volume was 29% above average (neutral) and Bollinger Bands were 20% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,608.42 1,637.74 1,703.70
Volatility: 9 9 11
Volume: 127,728,000 111,075,664 126,962,576
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FTSE BURSA KLCI is currently 6.0% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of .KLSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 7 periods.