Asian shares lost ground on Wednesday, while many of the region's currencies and the euro dropped sharply as dour comments from Chinese Premier Wen Jiabao and unease about Europe's debt crisis sapped confidence.
The Chinese leader also appeared to place conditions for expanding Beijing's investment in Europe, saying European leaders must take certain "bold steps," particularly recognizing China's status as a market economy.
Local sentiment reversed into pessimism as key index progressed into negative zone shortly after opening. The Intra-day Oscillator slid all the way down to finished at -717.23; lost 799.85 when compares with its starting point. The Average recorded a loss of 347.50.
At the end of the day, %K (Yellow) of MSCD recorded as -168.06 (-32.61), %D (Red) -243.40 (-8.33) and the Histogram, +88.20 (+3.22).
Both indicators faced down again and the Histogram printed its first shorter bar above the Zero-level.
Conclusion
Market sentiment remains choppy due to external volatilities. The shorter bar printed by the Histogram and %K has recorded a lower-high are signs of a weakening sentiment. News on European debt crisis will continue to weigh on market. However, as long as %K stays above %D, investors will pick up their favorites on weaknesses.
FBMKLCI remains below the resistance line and FBMACE has fallen below 20MA. There is no sign shows that market will resume its upward movement in the near future.
(Morning Flash: Dow Jones gained 140 points, last night)
The Chinese leader also appeared to place conditions for expanding Beijing's investment in Europe, saying European leaders must take certain "bold steps," particularly recognizing China's status as a market economy.
Local sentiment reversed into pessimism as key index progressed into negative zone shortly after opening. The Intra-day Oscillator slid all the way down to finished at -717.23; lost 799.85 when compares with its starting point. The Average recorded a loss of 347.50.
At the end of the day, %K (Yellow) of MSCD recorded as -168.06 (-32.61), %D (Red) -243.40 (-8.33) and the Histogram, +88.20 (+3.22).
Both indicators faced down again and the Histogram printed its first shorter bar above the Zero-level.
Conclusion
Market sentiment remains choppy due to external volatilities. The shorter bar printed by the Histogram and %K has recorded a lower-high are signs of a weakening sentiment. News on European debt crisis will continue to weigh on market. However, as long as %K stays above %D, investors will pick up their favorites on weaknesses.
FBMKLCI remains below the resistance line and FBMACE has fallen below 20MA. There is no sign shows that market will resume its upward movement in the near future.(Morning Flash: Dow Jones gained 140 points, last night)
Constructed and Written by Smartbiz (Chart of FBMKLCI extracted from ChartNexus)
(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)
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