Stocks on Bursa Malaysia closed sharply lower yesterday as investors reacted to the panic selling on the Tokyo Stock Exchange and other regional bourses, as the possibility of a large-scale nuclear meltdown in Japan following the deadly earthquake and tsunami last Friday has raised concern. The FBM KLCI fell by 11.21 points or 0.75% to close at 1,484.14. Decliners outnumbered advancers by 812 to 126 while 160 counters were unchanged. Turnover rose to 1.452 billion shares worth RM2.11 billion from Monday’s 802.362 billion shares worth RM1.179 billion.
The FBM KLCI opened 0.93 point lower at 1,494.42 and plunged to the intra-day low of 1,476.24 on heavy selling pressure in the morning session, losing as much as 19.11 points at its worst. The key index then rebounded on bargain hunting to close off low at 1,484.14. Chart-wise, the FBM KLCI formed a bearish black candlestick with a lower shadow which indicates sellers were dominant initially but buyers came in later to support selected index-linked counters. With the down move yesterday, the FBM KLCI had continued to stay within the current downtrend channel, and is expected to continue doing so in the near term. The critical support level to watch now is the 1,474 level, if this level could not hold, and then there is a strong likelihood that the FBM KLCI will slide towards the 1,450 level.
MACD continued to move lower and made a dead-cross over its signal line, issuing a strong sell signal. RSI (14) is at 37.1 and had continued to slide lower into the bearish zone. Stochastic had slid lower to 31.5, indicating a continuation of the down cycle and weak market strength. Readings from the indicators showed a very bearish condition of the FBM KLCI, and this is likely to continue for a while.
The FBM KLCI is currently on a downtrend as it is closing below the short, medium and long term moving averages. Immediate overhead resistance zone is at 1,495 to 1,509 while the immediate downside support zone is at 1,480 to 1,474. Overnight, the Dow fell -137.74 points or -1.15% to close at 11,855.42. Today, the FBM KLCI is likely to trade within a range of 1,456 to 1,514.
This week's expected range: 1453 – 1537
Today’s expected range: 1456 – 1514
Resistance: 1494, 1504, 1514
Support: 1456, 1466, 1475
1 comment:
US mkts may stage a rebound in the next couple days, due to vix popping out of its bollinger band-signals a buy signal(note has to fall back inside the next day to confirm it). Also whenever the S&P has fallen out of its bollinger band it has moved back up to test its 20 ma. (could be different this time.lol)Anyway if that is the case we may follow the bounce.
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