The market sentiment in the morning was slightly bullish however the confident level started to drop at about 10am and most of the 2nd/3rd liners started to turn “RED”. FBMKLCI was able to close positive during the morning session. However the market sentiment turn bearish in the afternoon session and the selling was aggressive at one time. The CI went as low as 1315.82 (-9.72) before closed higher at 1319.84 (-5.7, -0.43%). The CL was support by the EMA14 and rebounded off its day low (see the picture below).
The overall market’s trend is considers as bearish today as there were 175 up counters and 514 down counters with the market total traded volume increased by 38.5%% to 714 MIL shares. The market volume is above the 40 days VMA; this means that investors are willing to buy at lower price; another word the selling pressure is moderate.
Today’s FBMKLCI top 5 gainers components are PETDAG, BAT, PETGAS, PLUS and TANJONG. The top 5 lagging components are GENTING, MISC, PPB, RHBCAP and SIME.
FBMKLCI Technical Indicators
The INDEX stays below the Mid-Band slightly with the Bollinger band contracted -12%; this indicates FBMKLCI is consolidation with bearish biased.
RSI decreases to 70.76; this indicates FBMKLCI is consolidation.
STC %K hooks down to 51.93 and the %D decreases to 71.39, this indicates FBMKLCI is bearish biased.
The MACD line had hooked down and the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.
Summary
Most of the indicators indicate FBMKLCI is consolidation and bearish biased. The Asian bourses typically plunged from 1% to 4.27% except FBMKLCI downed only 0.4%. While writing this report (Malaysia Time 5.50pm), the European bourses typically plunged >2% across the boards. The global market had turned bearish and we need to trade with caution.
The nearest possible resistance levels for FBMKLCI are BBMB (1321) and 1350 whereas the nearest possible support levels are EMA14 (1315) and 1309. Please refer to the picture below.
