The global manufacturing data of respective countries are slipping off compare to previous month. Asia, particularly China is viewed as the engine of the global growth also indicates slow growth that in turn jitter the global economic recovery. Shanghai Composite has slipped for eight trading days consecutively, that drops around -210 pionts or -8% until today. Likewise, for DJI has slipped eight trading days consecutively, that drops by around -670 points or -6% until today.
For the last eight trading days, our FBMKLCI has slipped by around -27points or -2%. Today, FBMKLCI opens at 1312.97 (-1.05) and goes up slightly to 1315.87(+1.85) within the first 15 minutes. From then on, FBMKLCI has been slipping throughout the day to the lowest of 1306.75 (-7.27) and finally closed at 1308.76 (-5.26).
The overall market’s trend is considers as bearish biased today as there were 206 up counters and 413 down counters with the market total traded volume decreased by -1% to 557 MIL shares. The market volume is still below the 40 days VMA today; this means that many investors chose to stay sideline. However, for the last three days, it was observed that there are more of the cashing out from KLSE market, particularly during afternoon sessions.
Today’s FBMKLCI top 5 gaining components are CIMB, GENTING, BAT, GENM, and HLBANK. The top 5 lagging components are SIME, MISC, TENAGA, MAS, and AXIATA.
FBMKLCI Technical Indicators
FBMKLCI has closed below ema14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -8%; this means that although the index was downed but it is still considered as consolidation until a re-expension of BB10 to indicate a new direction;
RSI decreases to 60.36; this indicates FBMKLCI is in consolidation stage;
STC %K hooks down to 9.42 and the %D decreases to 44.48, this indicates FBMKLCI is bearish biased;
Momentum is decreasing down to almost zero level, this indicates as consolidation stage;
The MACD line is hooking down further almost to cut down the trigger line and the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.
Summary
Most of the indicators indicate FBMKLCI is bearish biased but it is still considered as consolidation stage until the next re-expension of the Bollinger Band 10 to indicate a new direction. The nearest possible resistance levels for FBMKLCI are dynamic EMA31 (1311) and the BMB10 (1322) whereas the nearest possible support levels are physcological 1300 and 1295 (Fibo 50%).
Please refer to the picture below.
