Bursa market outlook: *Below its 50-day EMA* Asian bourses we | StockiesMY

Bursa market outlook: *Below its 50-day EMA*

Asian bourses were little changed yesterday but the local benchmark FBMKLCI (KLCI) closed 10.71pts or 0.67% lower to end the day at 1,597.71. Most sectors succumbed to profit taking again with healthcare (-1.21%) and telecommunications (-1.06%) taking the largest hit. Only construction (+0.07%) and technology (+0.19%) bucking the trend. Market breadth stayed negative for its third day with 740 losers beating 328 gainers. Trading volume rose to 6.35bn (5.83bn previously) but trading value fell to RM3.05bn (RM3.35bn previously).

The general trend for the market remains in a sideways trend with the index trading close to the mid-point of the 1,560-1,640 range. The benchmark tested the resistance trend line from the 1,695 highs on Friday and formed a hanging man pattern. This pattern was followed by a couple of negative candles on Monday and Tuesday and the benchmark is now back below the 1,600 psychological level and its 50-day EMA (1,599). More weakness may follow next with minor support seen at 1,588 and 1,573-1,575. Strong overhead resistance is seen at 1,618-1,625. Our portfolio is now in *risk-on mode* following last Friday’s strong close above the 1,601 levels. The 1,601 level is key at this Friday’s close (16th Apr) once more. We have mentioned this warning before - when the market goes into a sideways trend, the portfolio may potentially swing from risk-on to risk-off and back to risk-on again. It is one of the pitfalls for a trend-following strategy.

Gainers: 328
Losers: 740
Unchanged: 429

DOW: 33,677.27 (-0.20%)
FTSE100: 6,890.49 (0.02%)
DAX: 15,234.36 (0.13%)
HSI: 28,497.25 (0.15%)
STI: 3,187.90 (0.44%)
KLCI: 1,597.71 (-0.67%)

USD: 4.1350 (0.08%)
AUD: 3.1500 (0.01%)
SGD: 3.0823 (0.02%)
EUR: 4.9211 (0.15%)
GBP: 5.6880 (0.12%)
JPY: 3.7926 (0.41%)
CNY: 0.6316 (0.10%)
HKD: 0.5319 (0.08%)

WTI: 60.18 (0.80%)
Brent 63.67 (0.62%)
GOLD: 1,745.51 (0.74%)
3rd MONTH FCPO: 3,726.00 (2.08%)
Msia 10 yr bond yield: 3.1100 (2.00%)
US 10 yr bond yield: 1.6145 (-3.07%)
ICE LIBOR USD 3M: 0.1858 (-0.93%)
Bitcoin Futures: 63,685 (5.19%)
Source: Bloomberg

*14th Apr 2021*
Disclaimers: This distribution is by CGS-CIMB Securities Sdn. Bhd. (“CGS-CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS-CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.