Constructed and Written by Smartbiz
Asian stocks rebounded solidly Thursday after positive U.S. data provided some relief to investors spooked by the recent market turmoil, with regional commodities and oil plays leading the surge.
Investors were encouraged by the U.S. ADP jobs report Wednesday and a growing acceptance among European officials of the need to recapitalize banks amid efforts to contain the region's debt crisis. (WSJ)
Market Sentiment
Local sentiment retreated in the afternoon session as investor waiting for details of the 2012 Budget. The Intra-day Oscillator fell into the red after the break but finished at +73.07; lost 742.00 when compares with its starting point. The Average recorded a gain of 224.82 due to positive mood in the morning session.At the end of the day, %K (Yellow) of MSCD computed as +32.80 (+34.86), %D (Red) -102.09 (+26.25) and the Histogram +77.60 (+14.32).
Both indicators moved higher and %K leaped into positive zone. The Histogram printed yet another longer positive bar.
The significant movement depicted by %K is a long awaited surprise. In fact, %K has been trapped in the negative zone for more than six months. The reversal is evident that selling has alleviated; instead, investors have taken advantage of the cheap prices to slowly pile up their portfolio.
Having said that, one cannot dismiss that local market is still perplexed by the endless global financial crisis. Market should remain volatile. One’s holding power is of utmost importance if he were to start fishing.
Key Index(Chart posted with courtesy of ChartNexus)
FBMKLCI ended exactly on the 1,400 today. Incidentally, the 1,400 is also its 20MA which actually is a water-shed of the up and down trend. Since the index fails to break through this level, the development in week ahead is still unpredictable.
However, from chart study, market trend is more upside bias.
(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)
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