FTSE Bursa Malaysia KLCI (.KLSE) Stock Market Likely To Remain Rangebound

FTSE Bursa Malaysia KLCI (.KLSE) Stock Market Likely To Remain Rangebound

FTSE Bursa Malaysia KLCI (.KLSE) Stock Market Likely To Remain Rangebound

The Malaysia stock market has finished lower in two of three trading days since the end of the four-day winning streak in which it had advanced more than 30 points or 2 percent. The Kuala Lumpur Composite Index now rests just above the 1,540-point plateau although it’s expected to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on easing coronavirus fears and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The KLCI finished modestly lower on Wednesday following losses from the financial shares and a mixed picture from the telecoms.

For the day, the index lost 8.54 points or 0.55 percent to finish at 1,542.94 after trading between 1,538.66 and 1,555.66. Volume was 2.8 billion shares worth 2.8 billion ringgit. There were 419 gainers and 405 decliners.

The lead from Wall Street is positive as stocks made a strong move to the upside on Wednesday, adding to the modest gains in the previous session and sending the major averages to new record closing highs.

The Dow added 275.08 points or 0.94 percent to end at 29,551.42, while the NASDAQ rose 87.02 points or 0.90 percent to 9,725.96 and the S&P 500 gained 21.70 points or 0.65 percent to 3,379.45.

The rally on Wall Street came as traders pushed stocks to new record highs despite concerns about the economic impact of the coronavirus outbreak; a recent slowdown in the rate of growth in new infections has led to optimism the outbreak is being contained.

Traders also kept an eye on Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee. Powell said the Fed is closely monitoring the coronavirus outbreak but also highlighted the resilience of the U.S. economy.

Despite a jump in U.S. crude stockpiles last week, crude oil prices moved up sharply on Wednesday amid expectations that OPEC will significantly cut crude production. West Texas Intermediate Crude oil futures for March ended up $1.23 or 2.5 percent at $51.17 a barrel.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1,571.95.

The projected upper bound is: 1,567.99.

The projected lower bound is: 1,509.07.

The projected closing price is: 1,538.53.

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 25 white candles and 25 black candles.

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 43.5748. This is not an overbought or oversold reading. The last signal was a sell 2 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 39.74. 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 7 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 -41. 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 2 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -3.780 at 1,539.160. Volume was 5% below average (neutral) and Bollinger Bands were 40% wider than normal.

Open     High      Low     Close     Volume___
1,544.7501,545.9201,536.7601,539.160 98,000,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,540.92 1,575.23 1,605.90
Volatility: 13 12 10
Volume: 151,136,000 109,826,552 111,449,504

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 4.2% below its 200-period moving average and is in an downward trend. Volatility is high 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 13 periods.

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