FTSE Bursa Malaysia KLCI (.KLSE) pares gains in muted post-Christmas trade

FTSE Bursa Malaysia KLCI (.KLSE) pares gains in muted post-Christmas trade

FTSE Bursa Malaysia KLCI (.KLSE) pares gains in muted post-Christmas trade

The FBM KLCI pared some of its gains at mid-morning today, tracking the quieter regional markets in post-Christmas trade.

At 10am, the FBM KLCI was up 0.34 points to 1,604.57. The index had earlier risen to a high of 1,607.12.

Gainers led losers by 223 to 161, while 269 counters traded unchanged. Volume was 342.85 million shares valued at RM155.55 million.

The gainers included Carlsberg Brewery Malaysia Bhd, LPI Capital Bhd, Salutica Bhd, UWC Bhd, Allianz Malaysia Bhd, SAM Engineering & Equipment (M) Bhd, Unisem (M) Bhd, Guan Chong Bhd and Time dotCom Bhd.

The actives included Bumi Armada Bhd, Tiger Synergy Bhd, Sino Hua-An International Bdh, i-Stone Group Bhd, Perdana Petroleum Bhd, JCY International Bhd, Inari Amertron Bhd and WCE Holdings Bhd.

The decliners included Heineken Malaysia Bhd, QL Resources Bhd, Ajinomoto (M) Bhd, G3 Global Bhd, Hong Leong Bank Bhd, Malayan Cement Bhd, Maxis Bhd, Gamuda Bhd and Apollo Food Holdings Bhd.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,591.44.

The projected upper bound is: 1,626.72.

The projected lower bound is: 1,581.87.

The projected closing price is: 1,604.30.

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 28 white candles and 22 black candles for a net of 6 white 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 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 81.2169. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 15 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 60.41. 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 52 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 89. This is not a topping or bottoming area. The last signal was a sell 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -0.680 at 1,603.550. Volume was 77% below average (consolidating) and Bollinger Bands were 42% wider than normal.

Open     High      Low     Close     Volume___
1,604.6801,607.1201,602.6601,603.550 22,687,500
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,591.18 1,585.87 1,619.06
Volatility: 10 9 9
Volume: 93,805,232 96,481,640 109,317,376

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 1.0% below its 200-period moving average and is in an upward 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 bullish on .KLSE and have had this outlook for the last 2 periods.

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