Malaysia Stock: KLCI Weekly Technical Analyais Report

Posted: July 18, 2014 in Uncategorized

Weekly wrap of KLCI:
Malaysian stocks opened lower with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 9.01 points to 1874.61 in tandem with lower Wall Street overnight, as sentiment was affected by the crash of the Malaysia Airline’s plane in the Ukraine-Russia border. Prices on Bursa Malaysia ended lower yesterday on selling pressure, in line with regional bourses. KLCI showed lower performance back to back and closed down the support. It may take correction till the 1860 level.

Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
1860 1800 1780 1916 1945 1970

Market Forecast for week ahead:
Market may perform better after taking correction to fill the window between 1880-1877 ranges. Prices are in the optimism of global economic growth.

klci

FBMKLCI WEEK’s Performance
Open 1883.77
High 1895.02
Low 1871.40
Close 1872.97
Change(Points) -10.18
% Change -0.54%

Technical indicators:
RSI for this week is 57.580 with CCI at 71.655. Besides, difference line of MACD (16.954) stood above its signal line (17.993).
ECONOMIC FACTORS:

  • Asian stocks fell for the first time in five days after a Malaysia plane was shot down over Ukraine and Israel sent troops into Gaza, spurring demand for haven assets.
  • Investments in Malaysia’s manufacturing sector jumped 100% in the first five months of the year.
  • Despite a surge to new record highs amid optimism over global economic growth from the International Monetary Fund’s (IMF) positive assessment of an acceleration of global growth next year, the blue-chip benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped into profit-taking correction mode in the later part of last week.
  • The central bank kept its benchmark interest (BI) rate at 7.5% for the 8th month on Thursday despite slowing inflation as Indonesia braces for declining exports to its main trading partners, which may impact the country’s current account balance.
  • The Malaysian economy will show strong momentum in the Q2 of the year, but growth will likely taper in the second half of the year.
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