Sentiment Index - Malaysian Stock Market

Constructed and Written by Smartbiz

Major Asian equity markets finished off lows Wednesday, as gains for Chinese banks worked to offset losses connected to weak results from U.S. aluminum giant Alcoa and a snag for Europe's bailout-fund expansion. (WSJ)

Market Sentiment
Local sentiment gradually picked up from a weak opening after the key index returned to positive zone. The Intra-day Oscillator climbed decisively to end at its day-high at +915.64; gained 942.03 when compares with its starting point. The Average recorded a gain of 398.46.

At the end of the day, %K (Yellow) of MSCD computed as +198.50 (+36.34), %D (Red) +9.95 (+31.09) and the Histogram +121.67 (+16.72).

Both indicators continued to edge higher and %D eventually crawled into positive area. The Histogram printed yet another longer bar - its tenth positive bar.

Conclusion
Market sentiment remained robust today even though profit taking emerged during the earlier session. The Intra-Day Oscillator which climbed with no hesitation to end at its day-high has adequately depicted market optimism.

Market outlook remains optimistic but trader will start to take profit after a week-long of nibbling. This is also true as %K has surpassed the uptrend line and pulling effect will set in soon.

Market will take a breather once FBMKLCI moves nearer to 1,443, the 50EMA.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI broke through 30EMA by adding another 17 points, today. Though Stochastic and William %R have surged into the overbought area, the upward momentum of the Index will continue to test its next resistance around 1,443.

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