KLCI – Another day of Red

KLCI_Chart

KLCI Chart 4-Dec-14

KLCI has entered into its 2nd day of red after a slight rebound of +7.7 points on Tuesday. The market sentiment remained wary after Monday’s sell off that recorded the biggest decline in 18 months. Disappointing corporate earnings, a weaker ringgit, lower commodity prices and cooling factory orders in China and the eurozone kept investors mostly on the sidelines.

The benchmark 30-stock FTSE Bursa Malaysia KL Composite Index (FBM KLCI) closed 12.46 points or 0.7% lower at 1,745.69 on heavy selling of banking and properties sectors. The market has extended its bearish sentiment with index recorded its lowest level since 6-Sept-2013.

It is the 6th consecutive red bar for the MACD, with RSI hoovering around 30% which is clearly oversold. The next support is at 1730 failing which the index may test 1703.

According to analyse, the crude oil price is unlikely to be back to $80 mark in the short to medium term. It is likely to trade around $60-$70 range. If $60 is broken, there is a high chance of it testing the $55 and subsequently $50 level.

So, with the current market condition, ones need to trade with cautious, and to be prudent with cut loss. It is unlikely to see a Dec window dressing this year.

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