Broad selling across FTSE Bursa Malaysia (.KLSE), KLCI down 11 points
Bursa Malaysia joined its regional peers in negative territory on Wednesday with selling pressure seen across the board.
Dealers said market sentiment was curbed by U.S. President Donald Trump’s comments on trade. Investors continued to fret over slowing growth and the impact of the US- China trade dispute.
The becnhmark FBM KLCI shed 11.26 points to 1,657.68 after staying in the negative territory throughout the day amid a weak broader market. The index opened 1.44 oints easier at 1,667.50 this morning. Over the course of today’s trading session, the index traded in a range of 11.03 points.
The broader market displayed its weakness as decliners thumped advancers by wide margin, with 618 losers to 226 gainers and 399 counters unchanged. Volume stood at to 3.82 billion units, valued at RM1.97bil.
In today’s session, 27 of the KLCI-component stocks closed lower while only one counter chalked up gains and two counters closed unchanged.
Leading the index lower, Petronas Chemicals shed 32 sen to RM7.92, Tenaga Nasional shaved 22 sen to RM13.56 while Maxis fell six sen to RM5.64.
IOI Corp was the top gainer on the 30-stock index, rising two sen to RM4.24.
On the broader market, British American Tobocca fell 64 sen to RM30, Allianz-PA shed 40 sen to RM13.60 while MPI fell 23 sen to RM9.31.
On the external front, China stocks closed down on Wednesday. At the close, the Shanghai Composite index was down 0.2% at 2,931.69 while the blue-chip CSI300 index was down 0.06% to 3,804.64.
Hong Kong’s Hang Seng index was down 26.45 points, or 0.09%, at 28,593.17.
South Korea’s Kospi index fell 18.95 points or 0.91% to 2,072.92 while Japan’s Nikkei share average fell 0.3% to 21,469.18.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,680.83.
The projected lower bound is: 1,635.24.
The projected closing price is: 1,658.04.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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 20.8450. This is not an overbought or oversold reading. The last signal was a sell 9 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 43.07. 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 sell 10 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 -182.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 -11.410 at 1,657.530. Volume was 19% below average (neutral) and Bollinger Bands were 51% narrower 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: 1,675.70 1,648.33 1,678.67
Volatility: 6 9 11
Volume: 92,586,768 117,459,152 123,919,632
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 1.3% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 0 periods.