Bargain hunting lifts FTSE Bursa Malaysia KLCI (.KLSE) higher at close

Bargain hunting lifts FTSE Bursa Malaysia KLCI (.KLSE) higher at close

Bargain hunting lifts FTSE Bursa Malaysia KLCI (.KLSE) higher at close

Bursa Malaysia reversed yesterday’s losses to finish higher today driven by bargain hunting in value stocks, particularly blue chips banking counters, following easing tensions between the United States and Iran.

At the closing bell, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) went up 6.55 points, or 0.41%, to 1,595.65 compared with 1,589.10 at yesterday’s close.

On the broader market, advancers outpaced decliners 601 to 254 while 358 counters were unchanged, 732 untraded and 16 others suspended.

Volume shrank to 2.83 billion shares worth RM1.89 billion from 3.86 billion shares worth RM2.22 billion yesterday.

Apart from banking counters which appeal to bargain hunters, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said plantation stocks also fared well during today’s trading after Indonesia announced plan to start road tests for B40 biodiesel programme starting April this year.

Main Market volume decreased to 1.88 billion shares worth RM1.63 billion from 2.73 billion units worth RM1.97 billion yesterday.

Warrants turnover slipped to 232.53 million units valued at RM38.41 million versus 387.75 million units valued at RM65.01 million on Wednesday.

Volume on the ACE Market dipped to 718.96 million shares worth RM218.81 million compared with 741.04 million shares worth RM188.93 million yesterday.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,593.77.

The projected upper bound is: 1,624.64.

The projected lower bound is: 1,567.37.

The projected closing price is: 1,596.01.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.3324. This is not an overbought or oversold reading. The last signal was a sell 8 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 50.67. 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 61 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 -98. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 6.550 at 1,595.650. Volume was 1% above average (neutral) and Bollinger Bands were 29% wider than normal.

Open     High      Low     Close     Volume___
1,593.7201,599.0101,589.9801,595.650 97,468,496
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,602.60 1,591.27 1,615.61
Volatility: 17 11 10
Volume: 79,774,880 95,620,928 107,522,272

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.

Summary

FTSE BURSA KLCI is currently 1.2% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into .KLSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 11 periods.

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