FTSE Bursa Malaysia KLCI (.KLSE) slips on Fed rate cut anxieties

FTSE Bursa Malaysia KLCI (.KLSE) slips on Fed rate cut anxieties

FTSE Bursa Malaysia KLCI (.KLSE) slips on Fed rate cut anxieties

The FBM KLCI started the week on a negative note as global equities stumbled on expectations of a lower policy rate cut by the US Federal Reserve.

Equities had received a boost last Friday as New York Fed president John Williams made comments taken to point towards a 50bps rate cut at the Fed’s next meeting.

However, those gains were reversed as the New York Fed walked back the comments over the weekend.

At 12.30pm, the FBM KLCI was down 5.56 points to 1,652.63. From a technical standpoint, the FBM KLCI is coming closer to the 50-day simple moving average, a negative crossing of which would suggest more bearish sentiment. 

Trading volume on Bursa Malaysia was 1.59 billion shares although the value of the traded stocks was muted at RM679.46mil. There was a negative market breadth of 437 declining counters to 246 gainers and 373 unchanged.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,678.85.

The projected lower bound is: 1,632.59.

The projected closing price is: 1,655.72.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 20.8302. This is not an overbought or oversold reading. The last signal was a buy 0 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 43.69. 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 sell 13 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 -121.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 13 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 sell 10 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -2.790 at 1,655.400. Volume was 32% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
1,658.2801,658.2801,647.7001,655.400 75,807,600

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 1,667.19 1,649.39 1,676.51
Volatility: 7 9 11
Volume: 93,515,520 116,402,152 123,654,112

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 1.3% 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 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 3 periods.

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