FTSE Bursa Malaysia KLCI (.KLSE) ends on a slightly positive note amid mixed signals
The FBM KLCI maintained its lead at Thursday’s close as investor ushered back into equities on reassurances that the US-China trade deal remained on track, although gains were capped by mixed signals.
At 5pm, the local index had retraced 2.65 points to 1,563.58, only slightly retracing the losses it had experienced over the last two days.
Trading volume was 2.39 billion shares valued at RM1.7bil. Market breadth was positive with 529 gainers, 305 decliners and 365 counters unchanged.
Over the trading day, investors pinned their hopes on a Bloomberg report that Washington and Beijing were close to signing a “phase one” agreement and that US President Donald Trump confirmed that talks were going smoothly.
This was in stark contract to comments he made on Tuesday suggesting that he was in no rush to ink a trade deal.
Plantation stocks were in focus on Thursday with KLCI heavyweight Sime Darby Plantation rising eight sen to RM5.15, KL Kepong adding 20 sen to RM23.74 and IOI adding three sen to RM4.43.
Off the KLCI list, United Plantation climbed 46 sen to RM26 while Genting Plantation rose 30 sen to RM10.48 Bank stocks were mostly positive, led by Maybank’s three sen advance to RM8.53. CIMB gained three sen to RM5.18, Public Bank added four sen to RM19.34, Ambank rose three sen to RM3.85 and RHB edged one sen higher to RM5.66.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,590.14.
The projected upper bound is: 1,584.36.
The projected lower bound is: 1,541.76.
The projected closing price is: 1,563.06.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black 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 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 26.9609. This is not an overbought or oversold reading. The last signal was a buy 1 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 37.15. 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 38 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 -96. This is not a topping or bottoming area. The last signal was a buy 0 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 14 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed up 2.650 at 1,563.580. Volume was 5% below average (neutral) and Bollinger Bands were 24% 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: 1,576.21 1,581.69 1,627.72
Volatility: 10 9 9
Volume: 103,108,904 93,427,376 112,444,128
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 3.9% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 4 periods.
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