FTSE Bursa Malaysia KLCI (.KLSE) opens in the negative, tracking Wall Street’s Friday showing

FTSE Bursa Malaysia KLCI (.KLSE) opens in the negative, tracking Wall Street’s Friday showing

FTSE Bursa Malaysia KLCI (.KLSE) opens in the negative, tracking Wall Street’s Friday showing

Bursa Malaysia opened lower today, tracking Wall Street’s subdued closing last Friday.

Market breadth was negative with 124 decliners outpacing 108 gainers, while 193 counters unchanged, 1,422 untraded and 20 others suspended.

Turnover stood at 127.58 million units worth RM46.71 million.

Public Investment Bank Bhd in a note said the FBM KLCI opened weaker today following last Friday’s dismal performance by the US stocks after the government’s monthly payrolls report estimated the economy added a better-than-expected 224,000 jobs in June, thus reducing the possibility of multiple rate cuts by Federal Reserve at year-end.

The Dow Jones Industrial Average shed 43.88 points to finish at 26,922.12 and the S&P 500 index declined 5.41 points to close at 2,990.41.

Among heavyweights, Maybank and CIMB shed two sen each to RM8.95 and RM5.35 respectively, Tenaga lost four sen to RM13.56, Petronas Chemicals eased one sen to RM8.62 and Public Bank was flat at RM23.00.

Of the actives, Sumatec Resources, Daya Materials and Ekovest trimmed half-a-sen each to three sen, one sen and 86.5 sen respectively, Green Packet and Sapura Energy were flat at 39 sen and 30 sen, respectively, while PCCS Group rose 2.5 sen to 62.5 sen.

Meanwhile, ACE Market debutant, Kim Hin Joo (M) Bhd, declined 6.5 sen to 36.5 sen after opening four sen lower from its 43 sen offer price.

The baby, children and maternity product retailer had 8,861,800 shares transacted at press time.

The FBM Emas Index slid 26.02 points to 11,879.27 and the FBMT 100 Index declined 27.55 points to 11,713.87.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,656.96.

The projected upper bound is: 1,701.31.

The projected lower bound is: 1,656.19.

The projected closing price is: 1,678.75.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 30 white candles and 20 black candles for a net of 10 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 44.6578. This is not an overbought or oversold reading. The last signal was a sell 2 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 59.23. 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 sell 3 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 -14. This is not a topping or bottoming area. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -4.890 at 1,677.640. Volume was 29% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
1,679.6501,679.6601,672.8801,677.640 82,308,800

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 1,680.82 1,643.17 1,683.07
Volatility: 6 9 11
Volume: 109,124,104 119,965,840 126,720,888

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 0.3% below its 200-period moving average and is in an upward trend. Volatility is low 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 24 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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