FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, drifts lower

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, drifts lower

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, drifts lower

Bursa Malaysia bucked the regional trend to finish in negative territory today amid an overall cautious market, in contrast to the regional markets.

At 5pm, the benchmark FBM KLCI closed 4.13 points, or 0.26% to 1,580.60 points. The index opened 0.26 point higher at 1,584.99 this morning.

Market breadth on Bursa was negative with losers leading gainers 541 to 336, while 424 counters closed unchanged. Turnover stood at 2.65 billion shares worth RM1.77bil.

Dealers said investors were waiting for the signing of the truce to end a prolonged US-China trade war. In addition, the US Treasury Department said China should no longer be designated a currency manipulator – a label it applied as the yuan dropped in August.

Topping the top losers list on Bursa Malaysia, Dutch Lady erased 66 sen to RM46.64, Hong Leong Bank shed 36 sen to RM16.84 and Hong Leong Financial Group fell 22 sen to RM16.94.

The gainers included Allianz-PA, which added RM1 to RM17, Carlsberg rose 40 sen to RM30.10 and Dufu gained 33 sen to RM3.87.

Among the component stocks, Sime Darby Plantations fell 12 sen to RM5.30, Tenaga Nasional shed six sen to RM12.90, Public Bank fell eight sen to RM19.14 while CIMB fell two sen to RM5.18.

The ringgit gained 0.25% to the US dollar at 4.0725, fell 0.02% against the pound sterling at 5.2816, added 0.28% against the euro at 4.5340 and fell 0.13% to the Singapore dollar at 3.0210.

Regionally, Japan’s Nikkei added 0.73% to 24,025.17, while Hong Kong’s Hang Seng Index shed up 0.24% to 28,885.14, Singapore’s Straits Times Index went up 0.48% to 3,266.61 while South Korea’s Kospi 0.43% rose 2,238.88.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,608.13.

The projected lower bound is: 1,552.56.

The projected closing price is: 1,580.35.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 17.9924. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 period(s) ago.

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.82. 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 64 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 -173.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 4 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -4.130 at 1,580.600. Volume was 1% above average (neutral) and Bollinger Bands were 0% narrower than normal.

Open     High      Low     Close     Volume___
1,584.9901,587.4701,571.8901,580.600 96,081,600
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,595.30 1,590.98 1,614.21
Volatility: 16 11 9
Volume: 87,855,528 92,902,904 107,307,712

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 2.1% below its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on .KLSE and have had this outlook for the last 14 periods.

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