Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Local sentiment beat by large amount of share orders due today with the Intraday Oscillator slid all the way down to end off low at -907.64; lost 642.94 when compares with its opening point. The Average recorded a loss of 680.32.

In MSCD, %K (Yellow) computed as +358.10 (-188.74), %D (Red) +248.73 (-74.35) and the Histogram +136.55 (-6.79).

Technical Analysis
After today’s trade, both indicators hooked downwards and the Histogram printed its first shorter bar in the positive area.

Today is a selling day with orders of more than 4 billion shares due but the amount of closed deal was only 2.6 billion. The comparatively lower volume is a sign of poor follow-up of the rally.

In MSCD, the Histogram printed its first shorter bar after climbing for more than eleven sessions. This is yet another sign of a subsiding market sentiment though we need more bars to confirm the round top. In addition to this, %K has failed to exceed its new high is also evidence of a market with losing strength.

Market sentiment will slide into a consolidation stage soon. However, the strong rally will not halt suddenly but slowly fade away with rotational play. Now should be the time for us to reduce our bets.

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