FTSE Bursa Malaysia KLCI (.KLSE) rebounds but sentiment on oil & gas stocks remains fragile
While the broader market and the energy index staged a technical rebound today after a steep fall on Monday, some heavily sold oil & gas (O&G) stocks remained in negative territory as investors remain wary about the sector’s outlook.
Dayang Enterprise Holdings Bhd, Wah Seong Corp Bhd, Carimin Petroleum Bhd and Petra Energy Bhd, which hit limit-down on Monday, continued to face selling pressure, with their share prices skidding 13.2%, 7%, 6.4% and 0.6% to RM1.32, 73 sen, 65.5 sen and 79 sen, respectively.
O&G stocks remained the top actives on the local bourse today, including Sapura Energy Bhd, Bumi Armada Bhd and Velesto Energy Bhd.
The FBM KLCI opened 8.3 points lower at 1,415.86 points and sank to an intraday low of 1414.95 before rebounding as much as 22.57 points or 1.6% to 1,446.73 points. The key index closed 6.31 points or 0.44% higher at 1,430.47 points.
The energy index gained 15.39 points or 2% to 770.34 points, while the technology index saw the biggest rebound of 1.14 points or 3.4% to 34.35 points.
There were 491 gainers against 477 losers on the local bourse, with turnover of 4.42 billion shares worth RM3.21 billion.
Almost all regional stock markets ended higher today, with China, Hong Kong, Indonesia and Singapore registering gains of over 1%.
However, the ringgit continued to weaken against the US dollar, by 0.5% to 4.2325 from 4.2130 on Monday.
Meanwhile, oil prices rebounded by about 8% on global stmulus hopes and Russia’s hint that its doors remain open to cooperation with Opec.
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 1,534.70.
The projected upper bound is: 1,468.80.
The projected lower bound is: 1,384.94.
The projected closing price is: 1,426.87.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 22.2194. This is not an overbought or oversold reading. The last signal was a buy 10 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 27.13. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 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 -181.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed up 6.310 at 1,430.470. Volume was 85% above average (neutral) and Bollinger Bands were 108% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,474.77 1,545.07 1,594.41
Volatility: 27 18 12
Volume: 202,711,808 138,897,856 115,941,232
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.
FTSE BURSA KLCI is currently 10.3% 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 moderate flows of volume out of .KLSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 31 periods. Our momentum oscillator is currently indicating that .KLSE is currently in an oversold condition.
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