FTSE Bursa Malaysia KLCI (.KLSE) ends in the red in line with regional markets
Bursa Malaysia ended in the red today, in line with regional markets, as concerns over the unrelenting 2019 novel coronavirus outbreak continue to cloud market sentiment.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 11.69 points to 1,542.80 from Friday’s close of 1,554.49.
After opening 2.58 points firmer at 1,557.07, the local index moved between 1,540.11 and 1,557.07 throughout the day.
On the broader market, losers led gainers 597 to 285, with 349 counters unchanged, 752 untraded and 36 others suspended.
Turnover decreased to 2.41 billion shares worth RM1.91 billion from 2.74 billion shares worth RM2.17 billion on Friday.
The FBM 70 lost 85.75 points to 13,738.93 and the FBM Ace contracted 2.89 points to 5,518.89.
Sector-wise, the Industrial Products and Services Index eased 1.08 points to 144.30, the Plantation Index was down 12.28 points to 7,295.63 and the Financial Services Index was 109.32 points lower at 14,871.84.
Main Market volume declined to 1.40 billion shares valued at RM1.63 billion from 1.54 billion shares valued at RM1.84 billion on Friday.
Warrants turnover decreased to 357.31 million units worth RM55.34 million from 406.22 million units worth RM57.40 million.
Volume on the ACE Market declined to 653.88 million shares valued at RM226.63 million from 788.18 million shares valued at RM260.27 million previously.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,572.32.
The projected upper bound is: 1,572.55.
The projected lower bound is: 1,511.28.
The projected closing price is: 1,541.91.
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 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FTSE BURSA KLCI), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 82.8249. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 39.90. 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 -30. 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 22 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -11.690 at 1,542.800. Volume was 0% above average (neutral) and Bollinger Bands were 50% 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: 1,542.34 1,576.88 1,607.05
Volatility: 14 12 10
Volume: 165,567,808 107,313,024 111,168,328
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 4.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .KLSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 10 periods.