Malaysia Market – End of the Day

Most Asian markets bounced off their early declines this afternoon with financial stocks rallying further as the U.S. bank stress tests didn't contain any nasty surprises. Federal officials and industry experts said the results of the stress tests were another sign that the economy was getting closer to the road to recovery. Another excited report was Bloomberg said Japan’s economy was no longer in freefall and would rebound as global demand picks up. At closing, Japan market eked out 0.50%, Hong Kong 1.00% and Singapore softened by 0.15%.

Shares on the local bourse followed its Asian peers became more lively after the break. KLCI managed to crawl back to positive zone after lingering in the red for the whole morning. The Index finished with slight gains of 3.31 pts to 1,026.78. Aided by rotational plays of penny stocks, total volume remained buoyant to 3,254 million shares decreased by 103 million shares from yesterday.

Today, the Intra-day Oscillator recorded an average gain of 1,186.90. The Key Indicator (Blue) of the Daily MSO Chart hooked down a bit to 1,256.37 lost 41.94 pts. The loss means nothing to the vigorous performance of the Indicator.

Around 10:00pm, yet another good news came as US government data showed that employers cut a smaller-than-expected 539,000 jobs in April, hinting at labor market improvement.

So, it looks like everything is perfect for the world now. Let’s see what OSK’s analyst Mr. Shin Kao Jack has said.

“We are likely to see more stocks hit limit-up, rising market volume and gains stretching in overbought territory. Technically, all indicators under our radar screen are firmly bullish,” he said.

“From the current level, look for an immediate resistance at the 1,041 pt-level, followed by the 1,064 pt level. Meanwhile, we are eyeing the 200-week MAV line, which is now situated at the 1,090 pt level, as the next upside target. An initial support is seen at the 1,008 pt-level, followed by the 990-1,000 pts upside-gap.” Shin Kao Jack said.

1.090? Sounds very good!

When market is bullish, all pessimistic turn into optimistic. People are not willing to face or talk about the bad and the ugly. However, at least for one, Chinese deputy Premier said, “The world hasn’t come out from the wood yet,”

Until and unless the MSO Chart yowl an alarm, meantime, let’s enjoy and forget about what he has said. (Constructed and shared by Smartbiz)