FBMKLCI – sentiment weakening
Despite a better than expected GDP of 6% for 2014, KLCI closed 0.55% lower to 1789. Today is in fact the 4th consecutive days of decline in the Main Index. Technical wise, since it failed to go higher above 1820 short term target after back to 1800 region on 23-Jan-14, the outlook has been gloomy for the Index to reverse its bearish momentum.
In terms of buying vs selling, it has gone through 3 days of selling pressure as shown on the volume bar. MACD is started to show the MACD line “kissing” the signal line indicating bear in back. The more sensitive stochastic has already shown red crossing blue line since three days ago. Overall, it is under selling pressure. One other interesting indication is that the index is now back below 20-days moving average confirming short term bearish.
We might be seeing index running sideway or worst case retrace lower just before the shorten trading sessions next week in conjunction with CNY.