FTSE Bursa Malaysia KLCI (.KLSE) rises 0.38% on select index-linked stocks as regional markets trade mixed, US corporate earnings eyed

FTSE Bursa Malaysia KLCI (.KLSE) rises 0.38% on select index-linked stocks as regional markets trade mixed, US corporate earnings eyed

FTSE Bursa Malaysia KLCI (.KLSE) rises 0.38% on select index-linked stocks as regional markets trade mixed, US corporate earnings eyed

The FBM KLCI advanced 0.38% in early trade Tuesday as gains at select index-linked stocks lifted the local bellwether, against the backdrop of mixed regional markets, with US corporate earnings this week set to dictate investor sentiment.

At 9.05am, the FBM KLCI rose 5.14 points to 1,361.17.

The early gainers included British American Tobacco (M) Bhd, Heineken Malaysia Bhd, Westports Holdings Bhd, Top Glove Corp Bhd, KESM Industries Bhd, IOI Corp Bhd, Petron Malaysia Refining & Marketing Bhd, Tenaga Nasional Bhd, Digi.Com Bhd and Supermax Corp Bhd.

Bloomberg reported Asian stocks looked set for a mixed start to Tuesday ahead of one of the most uncertain earnings seasons on record as the coronavirus pandemic rattles the global economy. U.S. equities retreated.

Futures in Japan pointed to a modest rise, while stock markets in Hong Kong and Australia reopen after holidays. The S&P 500 Index closed lower though the Nasdaq managed to gain. U.S. futures were little changed in Asia trading. Oil fluctuated as investors weighed whether an unprecedented deal by the world’s biggest producers to cut output could stabilize the market. Treasuries and the dollar retreated, it said.

JF Apex Securities Research said US markets ended mixed overnight as investors brace the corporate results season affected by the coronavirus while European markets remained closed.

“On the local market, the FBM KLCI ended flat after shedding 1.47 points to 1356.03 points.

“Following the recent flattish trend, the FBM KLCI could remain sideways below the resistance of 1370 points,” it said.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 1,431.56.

The projected lower bound is: 1,279.08.

The projected closing price is: 1,355.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 24 white candles and 26 black candles for a net of 2 black candles.

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 50.5285. This is not an overbought or oversold reading. The last signal was a sell 1 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 48.76. 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 15 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 68. This is not a topping or bottoming area. The last signal was a sell 2 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 13 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 2.830 at 1,358.860. Volume was 96% below average (consolidating) and Bollinger Bands were 28% wider than normal.

Open     High      Low     Close     Volume___
1,361.0101,361.8901,358.0901,358.860 6,271,400
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,349.94 1,420.22 1,555.24
Volatility: 20 36 20
Volume: 125,651,760 186,465,504 127,153,304

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 12.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 3 periods.

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