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Tuesday, March 1, 2011

Malaysia Stock Market - End of the Day

Technically, overall market sentiment remains weak but gradual improvement is possible from here.

Asian stock markets were higher Tuesday, helped by stability in oil prices, with shares in China rising as concerns about further tightening measures from Beijing eased after two separate surveys showed the country's manufacturing growth slowed in February.

Shares in China rose as tightening concerns eased on lower official and HSBC Purchasing Managers Indexes for February.

"We expect the PMI to retreat further in the months ahead, that may diminish the likelihood of stronger tightening measures from Beijing," said Tang Yonggang, an analyst from Hong Yuan Securities. (WSJ)

At closing, Japanese market up by 1.22%, China 0.51%, Hong Kong 0.25% and Singapore 1.97%.

At the local front, FBMKLCI made a good start and climbed smoothly up to break the 1,500 level amid stronger regional markets. The index ended at its day-high at 1,502.24 (+10.99/0.74%). Total Volume was 1,117m (-46m). (FBMKLCI Chart extracted from Jupiter)

Overall market sentiment progressed in opposite direction weakening towards the end of the session even though key index was hiking. The Oscillator slid to end off low at -139.45; lost 495.26 when compares with its starting point. The Average recorded a loss of 10.98.


Today, FBMKLCI eventually broke through the psychological barrier, 1,500, and finished at 1,502.24. However, in order to escape from the downtrend channel the index must strive further to break through 1,505, the upper trendline.

Based on charts, the odds are good now as most indicators have turned optimistic.

First, W%R has pierced through its 6-day SMA. You will notice from the charts that FBMKLCI moved higher most of the time when W%R cut its 6-day SMA. Secondly, %K Line in Stochastic has crossover %D Line - a bullish sign. Thirdly, Histograms of MACD has formed a round bottoming. The only setback is the shrinking volume which might weakening the upside momentum.

Having said that, one must remember that the upside movement of the index cannot be viewed as any bullish reversal yet as the toughest overhead resistance lies on 1,512, the Middle Bollinger Band. The index should remain choppy before heading for a bullish reversal. (Chart extracted from 188OMS)

In the MSCD, K% Line (yellow) recorded as -615.21 (+109.82), D% Line (red) -480.51 (+37.58) and the Histogram -186.39 (+12.92).

After today’s trade, both indicators hooked slightly up and the Histogram printed its initial shorter negative bar. Technically, overall market sentiment remains weak but gradual improvement is possible from here.

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.)

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