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Friday, October 28, 2011

Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Markets in Asia gained Friday, extending an advance that started a day earlier when Europe announced its latest plan to contain its sovereign-debt crisis.

Speaking about Friday's market advance, Jefferies strategist Naomi Fink said: "I think it's the risk-on trade coming back, [although] I also think there's still some outstanding skepticism that this will be the last we hear of the euro-zone fiscal crisis." (WSJ)

Market Sentiment
Local sentiment opened in strong mood but fast to lose strength due to profit taking. The Intra-day Oscillator slid to end at +552.35; lost 2,470.42 when compares with its opening point. The Average recorded a gain of 1,080.71 due to strong opening.

At the end of the day, %K (Yellow) of MSCD computed as +504.60 (+104.70), %D (Red) +288.70 (+63.38) and the Histogram +150.23 (+16.42).

Both indicators moved higher and the Histogram printed another longer bar in the positive zone.

Market sentiment motivated by Dow Jones overnight 3% gain continued to rally, today. But profit taking trimmed the gain as market has been up for a week. However, selling was well absorbed as volume remained the same as yesterday.

In MSCD, %K fails to exceed its previous high even after two day’s strong rally. This shows that buying strength has been offset by selling due to some hesitation. Market sentiment will progress in cautious mood while waiting for clearer announcement from Europe.

Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI added another 11 points to finish at 1,480.82. As all indicators are still pointing upward the index will further advance to test the 100SMA. The 100-Day Moving Average is actually the psychological 1,500 level. As such, the index will mostly capped by this barrier in its first attempt to stage a breakthrough.

Meanwhile, all low liners are still waiting for an affirmative lead.

(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)

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