FTSE Bursa Malaysia KLCI (.KLSE) remains in the red
Bursa Malaysia remained in the red across board at mid-morning due to continuous sell-offs, mainly involving banking stocks.
At 11.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 18.60 points to 1,596.45 from Friday’s close close of 1,615.05.
The benchmark index opened 0.20 points easier at 1,614.85.
Losers continued to outpace gainers by 576 against 115, while 243 counters remained unchanged, 972 untraded and 18 others suspended.
Turnover stood at 803.61 billion units worth RM464.461 million.
For the heavyweight banking stocks, Maybank shed four sen to RM8.56, Public Bank lost 56 sen to RM20.96, CIMB slid one sen to RM5.03, Hong Leong eased 20 sen to RM17.32, while RHB lost three sen to RM5.57.
Of the active stocks, Ta Win fell two sen to 14.5 sen, Genting shed eight sen to RM3.14, KNM loss half a sen to 38.5 sen, while its warrant dropped 10 sen to 19.5 sen, while Bumi Armada weakened one sen to 22 sen.
The FBM Emas Shariah Index depreciated 117.90 points to 11,808.67, the FBM Emas Index lost 125.08 points to 11,315.25, the FBMT 100 Index declined 122.38 points to 11,150.49, the FBM Ace dropped 42.08 points to 4,655.56, while the FBM 70 was 124.65 points lower at 14,179.72.
Sector-wise, the Financial Services Index narrowed 155.40 points to 15,686.59, the Industrial Products and Services Index was marginally lower by 2.58 point to 150.06 and the Plantation Index easier 46.64 points easier to 6,680.77.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,642.67.
The projected upper bound is: 1,616.34.
The projected lower bound is: 1,568.19.
The projected closing price is: 1,592.26.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FTSE BURSA KLCI), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 53.3203. This is not an overbought or oversold reading. The last signal was a buy 4 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 26.58. 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 2 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 -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 24 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -22.170 at 1,592.880. Volume was 26% above average (neutral) and Bollinger Bands were 47% 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: 1,619.42 1,655.09 1,666.87
Volatility: 11 9 10
Volume: 160,262,976 119,757,440 125,029,624
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 4.4% 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 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 17 periods. Our momentum oscillator is currently indicating that .KLSE is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.
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