Malaysia Stock Market – End of the Day

Technically, the sudden fall of K% Line into negative zone confirmed a bearish reversal of the overall market sentiment. On top of this, charts that gauged FBMKLCI namely MACD, RSI and Stochastic also printed weaker signals.

Most Asian share markets posted tentative gains Tuesday following a U.S. holiday and an unimpressive start to efforts by Europe to invigorate its response to a protracted debt crisis.
Meanwhile, investors across the region were waiting to see how Wall Street reacts to Apple's announcement that CEO Steve Jobs would be taking a medical leave of absence. U.S. financial markets were closed Monday for a holiday.

The news could hammer the company's shares and overall sentiment when trading opens for the week. The company made the announcement a day before its quarterly earnings report. (Yahoo)

After 5.00pm, Asian major markets mostly ended with slight gains with Japanese market eked up 0.15%, China 0.09%, Singapore 0.34% but Hong Kong down 0.01%.

At the local front, FBMKLCI though opened with gains but slid into the red shortly. The index struggled below the neutral line for the whole session and ended at 1,570.04 (-4.45/0.29%). Total Volume was 1,703m (-203m). (FBMKLCI Chart extracted from Jupiter)

Market sentiment plumbed into negative tone after seeing the index failed to return above the original position. The Oscillator slid as deep as 2,368.42 but ended off low at -2,114.70 lost 2,342.32 when comparing with its starting point. The Average recorded a loss of 1,587.23.

Conclusion

Today, FBMKLCI failed to break through its overhead resistance, 1,576, but slid into the red. The failure has disappointed investors and thus, attracted more selling across the board.

In the MSCD, K% Line (yellow) recorded as -73.66 (-275.10), D% Line (red) +51.91 (-131.18) and the Histogram +57.63 (-45.80).

After today’s trade, both key indicators fell sharply with K% Line nose-dived into the red. The Histogram printed a shorter bar.

Technically, the sudden fall of K% Line into negative zone confirmed a bearish reversal of the overall market sentiment. On top of this, charts that gauged FBMKLCI namely MACD, RSI and Stochastic also printed weaker signals. All this subdued technical readings indicate that investors prefer to sideline and waiting for a fresh lead.

However, so long as the support at 1,558 is intact, market still has chance to stage a Chinese New Year rally.

Constructed and Written by Smartbiz (Click on chart to view)

(Note: You can read the explanation for Intra-Day MSO and MSCD from the achieves under heading "Labels" at the lower portion of the sidebar.)