FTSE Bursa Malaysia KLCI (.KLSE) pares gains, poised to erase loss on window dressing

FTSE Bursa Malaysia KLCI (.KLSE) pares gains, poised to erase loss on window dressing

FTSE Bursa Malaysia KLCI (.KLSE) pares gains, poised to erase loss on window dressing

The FBM KLCI pared some of its loss at the midday break today on some minor window dressing activities, against the backdrop of firmer regional markets.

At 12.30pm, the FBM KLCI was down 0.55 points to 1,570.61. The index had earlier slipped to a low of 1,565.59.

Losers led gainers by 302 to 243, while 526 counters traded unchanged. Volume was 1.21 billion shares valued at RM760.1 million.

The decliners included United Plantations Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Malaysian Pacific Industries Bhd, LPI Capital Bhd, Manulife Holdings Bhd, Lingkaran Trans Kota Holdings Bhd, Atlan Holdings Bhd and Panasonic Manufacturing Malaysia Bhd.

The actives included Ekovest Bhd, Iskandar Waterfront City Bhd, Tiger Synergy Bhd, Sapura Energy Bhd, WCE Holdings Bhd, DGB Asia Bhd, TDM Bhd and Sanichi Technology Bhd.

The gainers included Genting Plantations Bhd, Heineken Malaysia Bhd, Ajinomoto (M) Bhd, MISC Bhd, Hong Leong Industries Bhd, QL Resources Bhd and Allianz Malaysia Bhd.

Reuters said a broad gauge of Asian share markets hit nearly eight-month highs on Monday after the United States and China agreed a preliminary trade deal, and amid policy-easing hopes in Australia, but profit-taking and caution over the deal’s details capped gains.

US Trade Representative Robert Lighthizer on Sunday said a deal was “totally done”, notwithstanding some needed revisions, and would nearly double US exports to China over the next two years, it said.

Affin Hwang Capital Research said the FBM KLCI gained 3.82 points or 0.002%, to close at 1,571.34 on Friday.

It said current lethargic market anticipated to continue into this week as market likely to experience lack of fundamentally bullish catalysts towards end-December except the year end “window dressing” activity which are short-term in nature.

“Key support level is still valid at the 1,550 while immediate resistance range of between 1,585-1,615 [has] hardly been tested. Note that the underlying market sentiments remain bearish in tandem with major downtrend of the market, as such any rebounds are anticipated to be short-lived.

“Major down trend remains. ‘Window dressing’ play likely to unfold in the near term,” it said.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1,586.59.

The projected upper bound is: 1,589.19.

The projected lower bound is: 1,549.97.

The projected closing price is: 1,569.58.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.

An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.

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 57.7253. This is not an overbought or oversold reading. The last signal was a buy 8 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 44.25. 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 45 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 12. This is not a topping or bottoming area. The last signal was a buy 7 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 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -1.810 at 1,569.350. Volume was 26% below average (neutral) and Bollinger Bands were 10% wider than normal.

Open     High      Low     Close     Volume___
1,568.4301,573.4101,565.5901,569.350 77,939,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,565.08 1,580.02 1,622.77
Volatility: 5 8 9
Volume: 93,369,528 94,474,104 110,834,808

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 3.3% below its 200-period moving average and is in an downward 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 bearish on .KLSE and have had this outlook for the last 11 periods.

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