FTSE Bursa Malaysia KLCI (.KLSE) Navigating the Turbulence

FTSE Bursa Malaysia KLCI (.KLSE) Navigating the Turbulence

FTSE Bursa Malaysia KLCI (.KLSE) Navigating the Turbulence

Bursa Malaysia extended last week’s gain to open higher today, with the composite index rising 1.19 per cent on the back of positive market sentiment following a strong performance on the Wall Street last week.

The Shayne Heffernan Idea

Wall Street’s stronger closing last Friday on hopes of an early opening of the US economies could be wishful thinking. It pointed out total deaths from Covid-19 are closing in at 800,000 with deaths surpassing 40,000.

“Nonetheless, I believe after a rather strong performance last week, regional markets may look to take a breather today. The KLCI which was up by 50 points last week may see some easing today with 1,400 as the immediate support level.

“With crude oil prices plunging to a low again, this may put additional pressure on the MYR currently hovering at the RM4.40/US$1. Shayne Heffernan PhD in Economics

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,502.52.

The projected lower bound is: 1,347.03.

The projected closing price is: 1,424.78.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 88.1461. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 61.84. 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 19 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 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 17 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 19.750 at 1,427.090. Volume was 51% below average (consolidating) and Bollinger Bands were 5% narrower than normal.

Open       High       Low         Close         Volume
1,411.690  1,428.950  1,411.690   1,427.090 7   6,455,000
Technical           Outlook
Short Term:         Overbought
Intermediate Term:  Bullish
Long Term:          Bearish
Moving Averages:   10-period       50-period        200-period
Close:             1,379.50        1,408.92         1,549.75
Volatility:        18              37               20
Volume:            130,010,664     188,510,608      127,902,032

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 7.9% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .KLSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 7 periods.

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