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Wednesday, November 2, 2011

Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Most Asian markets ended down but off their lows for the day on Wednesday, with Hong Kong and Shanghai advancing, ahead of emergency talks among European Union leaders to discuss Greece's call for a vote of confidence and a referendum on EU plans to stem the region's debt crisis.

Markets were also hopeful that the Federal Reserve might hint at new stimulus measures for the U.S. economy as it concludes its two-day policy meeting. (WSJ)

Market Sentiment
Local sentiment continued its skeptic mood but nibbling on cheap prices in the late session pulled the Intra-Day Oscillator ended in the black. The Oscillator finished at +38.35; gained 833.23 when compares with its opening point. The Average recorded a loss of 427.13.

At the end of the day, %K (Yellow) of MSCD computed as +139.08 (-102.91), %D (Red) +143.93 (-45.70) and the Histogram +104.15 (-27.25).

Both indicators lost strength and %K lower to meet %D. The Histogram printed another shorter bar.

Market sentiment recovered gradually from earlier weakness as buying emerged in the late session. The buying was a response to a better European market.

In MSCD, %K is going to cut %D after falling for three sessions. The critical stage is evident that investor’s confidence has been disturbed again. Market sentiment should remain cautious but the timely nibbling will support %K to stay above the zero level.

Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI fell sharply today but rebounded when touching the 12EMA. The index eventually lost less than 5 points and printed a “Doji” after the session. The Doji indicates investor’s hesitation as solution of the European debt crisis became cloudy again.

Meanwhile, the 12EMA is an immediate support but the strong support laid on the 20SMA around 1,442.

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

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