Bursa Malaysia Bhd (BMYS:KL) Mahathir’s economic vision a hard sell for investors

Bursa Malaysia Bhd (BMYS:KL) Mahathir’s economic vision a hard sell for investors

Bursa Malaysia Bhd (BMYS:KL) Mahathir’s economic vision a hard sell for investors

Malaysia’s stock market may be set to repeat the market sell-off in 2015 as trade friction between United States and China escalates, say analysts.

They, however, kept optimistic year-end targets of above 1,700 points, meaning the fall which has begun since April this year is expected to end within as long as five to six months.

A new major support level of 1,600 points, a level that the key benchmark index has not traded on since August 2015, had been set and any attempt to break the level would spread fear that the index could be on the brink of falling into bear market, the analysts said.

The current fall seems to have mirrored the initial fall of the market sell-off in 2015 when FTSE Bursa Malaysia KLCI lost over nine per cent in just over two months since April 21, 2015, they added.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8.11.

The projected lower bound is: 7.09.

The projected closing price is: 7.60.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 16 white candles and 32 black candles for a net of 16 black candles.

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 87.7551. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 49.88. 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 33 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 17. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

BURSA MALAYSIA closed up 0.100 at 7.600. Volume was 90% below average (consolidating) and Bollinger Bands were 7% wider than normal.

Open High Low Close Volume___
7.500 7.600 7.460 7.600 147,200

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7.47 7.63 7.11
Volatility: 24 42 27
Volume: 1,301,600 1,634,650 1,399,154

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

BURSA MALAYSIA is currently 6.9% above 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 moderate flows of volume out of BMYS.KL (mildly bearish). Our trend forecasting oscillators are currently bearish on BMYS.KL and have had this outlook for the last 11 periods.

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