FTSE Bursa Malaysia KLCI (.KLSE) Expected to Slide in Early Trade

FTSE Bursa Malaysia KLCI (.KLSE) Expected to Slide in Early Trade

FTSE Bursa Malaysia KLCI (.KLSE) Expected to Slide in Early Trade

Key Asian markets including Bursa Malaysia kicked off the new week on a weak footing as uncertainties over the prolonged Covid-19 weighed on investor confidence.

At 9.18am, the FBM KLCI was down 14.62 points or 1.09% to 1,328.47. Turnover was 372.54 million shares valued at RM175.21mil. There were 126 gainers, 371 losers and 165 counters unchanged.

Stocks retreated along with crude oil, and the dollar snapped a four-day slide as investors took in weekend developments that underscored a long road ahead to defeat the coronavirus.

Japan’s Topix index fell 4.2% as of 10:02 a.m. in Tokyo; futures on the S&P 500 declined 1.4% and South Korea’s Kospi slid 3% but Australia’s S&P/ASX 200 Index added 1.5%.

At Bursa last week, foreign funds were net sellers at RM631.9mil and retail investors were also seen to lock in gains with net selling at RM38.7mil after the rally but local institutions were net buyers at RM670.6mil.

Leading the decliners were F&N, down RM1.06 to RM29.02, Carlsberg RM1.02 to RM24.60, Ajinomoto 68 sen to RM12.30 and Heineken 32 sen to RM21.60.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1,433.79.

The projected upper bound is: 1,388.19.

The projected lower bound is: 1,240.55.

The projected closing price is: 1,314.37.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 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 81.7619. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 40.91. 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 18. This is not a topping or bottoming area. The last signal was a buy 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -23.200 at 1,319.890. Volume was 84% below average (consolidating) and Bollinger Bands were 230% wider than normal.

Open     High      Low     Close     Volume___
1,336.2301,336.2301,319.1801,319.890 23,435,000
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,288.52 1,465.80 1,572.32
Volatility: 54 35 20
Volume: 245,179,696 186,459,872 125,147,008

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 16.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 45 periods.

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