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Monday, November 19, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Local sentiment failed to perk up on the first day of the week as the key index opened in negative tone. The Oscillator slid all the way down to end at -146.10 lost 158.09 compared to its opening point at +11.99. The Average recorded as -117.15; gained 50.62 compared to -167.77 of the previous session.

MSCD: After today’s market, %K is almost unchanged but the Histogram printed its first shorter bar in the negative zone.

MSCD data are appended as below:

Analysis: Market sentiment remained bearish as investors mostly sidelined amid a tire key index . Low-liners, by large, were losers but rotational plays were seen here and there.

Report said the uncertainty surrounding the US fiscal cliff, leadership change in China and escalating violence in West Asia are expected to dampen trading on Bursa Malaysia this week. The logical downside objective would be 1,620 and 1,600 level while the next area of resistance would be 1,630 and 1,650 level.

Explanation on MSCD: 
1. %K (Yellow) is a 12-Day EMA Oscillator that reflects the trend of present market sentiment. 
2. %D (Red) is a 26-Day EMA Oscillator serves as a trigger line for short-term trend of market sentiment. Market is considered as under short term bearishness once %K fell below %D but will recover sooner or vice versa.
3. %A (Blue) is a 54-Day EMA Oscillator serves as a trigger line for mid-term trend of market sentiment. Market is considered as under mid-term bearishness once %D fell below %A and will take longer to recover or vice versa. 
4. HGM (Histogram) is a bar signal that shows the relative strength of %K and %D. 
5. All data are taken from the Intra-Day Market Sentiment Oscillator (MSO) computed from the number of Gainer and Loser in a regular time basis.

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