Constructed and Written by Smartbiz
Asia markets climbed on Thursday, with export and resource companies among the biggest gainers, as the latest plan to resolve Europe's sovereign-debt woes revived appetite for equities."Risk appetite improved, bank stocks rallied and the euro edged up to above $1.38 after European Commission President Jose Manuel Barroso pledged for urgent recapitalizing of European banks," noted Crédit Agricole strategists. (WSJ)
Market SentimentLocal sentiment extended its strong tone from yesterday. The Intra-day Oscillator opened near the 2,000 level but receded and finished at +1,692.36; lost 251.93 when compares with its starting point. The Average recorded a gain of 1,615.49.
At the end of the day, %K (Yellow) of MSCD computed as +416.43 (+217.93), %D (Red) +128.93 (+118.97) and the Histogram +154.82 (+33.17).
Both indicators pointed sharply north and the Histogram printed another longer bar - its eleventh positive bar.
Conclusion
Market sentiment continued in high note today with most of the stocks playing catch up after a long doldrums.
Overall market outlook should remain strong short term but, taking a breather is considered as healthy for the market. The sustainability of FBMKLCI which broke through its 50EMA barrier today will guide the progress of market sentiment for tomorrow.
Key Index (Chart posted with courtesy of ChartNexus)
FBMKLCI finished slightly above the 50EMA but capped by the Upper Bollinger Band today. Since the Bollinger Band remains contracted, the index might go sideways due to the pulling effect.
However, the ACE market is telling a different story. The FBMACE printed a long white candle above the resistance line after today’s trade. The Bollinger Band started to open, both Stochastic and William %R leaped into overbought territory in initial stage, the index has a tendency to test its overhead resistance around 3,854.
(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)
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