Asian shares were higher on Thursday as improved sentiment kept safe-haven assets such as the yen and gold on the defensive.
"The three-day advance in U.S. stocks is prompting bargain-hunting and short-covering, but overall sentiment still leans towards pessimism and trading will likely continue to be volatile going into next week," said Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities in Japan.
Local sentiment defied regional trend instead progressed in weaker tone with the Intra-day Oscillator slid all the way down to finish off low at -350.98; lost 456.92 when compares with its starting point. The Average recorded a loss of 262.07.
At the end of the day, %K(yellow) of MSCD recorded as -349.49 (+15.89), %D(red) -403.27 (+11.30) and the Histogram +4.92 (+12.22).
Both indicators moved slightly higher to face the resistance line again. The Histogram completed its round bottoming process and printed its first positive bar.
Conclusion
MSCD moves in different direction from the key index but edging up for three sessions. This is because, comparatively, market sentiment has calm down after the panic selling two weeks ago. The edging up of the MSCD indicates selling has alleviated and nibbling emerges on weaknesses. However, the overall scenario is still bad taking into consideration of the endless problems from global financial markets. As such, the nibbling should be viewed as a short term strategy applied by some investors or just buying of the respective companies to support their share values at the low level.
FBMKLCI has fallen below its temporary support around 1,468 yesterday and its next support is around 1,456. The sustainability is in doubts.
(Morning Flash: Dow Jones fell 170 points last night)
"The three-day advance in U.S. stocks is prompting bargain-hunting and short-covering, but overall sentiment still leans towards pessimism and trading will likely continue to be volatile going into next week," said Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities in Japan.
Local sentiment defied regional trend instead progressed in weaker tone with the Intra-day Oscillator slid all the way down to finish off low at -350.98; lost 456.92 when compares with its starting point. The Average recorded a loss of 262.07.
At the end of the day, %K(yellow) of MSCD recorded as -349.49 (+15.89), %D(red) -403.27 (+11.30) and the Histogram +4.92 (+12.22).
Both indicators moved slightly higher to face the resistance line again. The Histogram completed its round bottoming process and printed its first positive bar.
Conclusion
MSCD moves in different direction from the key index but edging up for three sessions. This is because, comparatively, market sentiment has calm down after the panic selling two weeks ago. The edging up of the MSCD indicates selling has alleviated and nibbling emerges on weaknesses. However, the overall scenario is still bad taking into consideration of the endless problems from global financial markets. As such, the nibbling should be viewed as a short term strategy applied by some investors or just buying of the respective companies to support their share values at the low level.
FBMKLCI has fallen below its temporary support around 1,468 yesterday and its next support is around 1,456. The sustainability is in doubts. (Morning Flash: Dow Jones fell 170 points last night)
Constructed and Written by Smartbiz (Chart of FBMKLCI extracted from ChartNexus)
(Note: You can read the explanation for Intra-Day MSO and MSCD from the archive under heading "Labels" at the lower portion of the sidebar.)
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