Bursa Malaysia has moved lower in four straight sessions, slipping almost 15 points or 1 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,440-point plateau although it may stop the bleeding on Friday.
RHB Retail Research Market Dateline said today (Dec 8) said the FKLI persisted in its correction, falling below the 50-day SMA line yesterday to settle 4.50 pts lower at 1,441 pts.
The index opened at 1,445.50 pts, then whipsawed in a bearish fashion between the 1,449 pts high and 1,441 pts low, ultimately closing at the intraday low.
The fourth consecutive session of corrections yesterday indicates the ongoing correction is still in play, and the FKLI is likely to hover below the 50-day SMA line in the upcoming sessions.
The ongoing correction is supported by the weak RSI momentum indicator pointing at 43% in negative territory.
Despite the 50-day SMA line is trending higher, the index is trading below the medium term trendline.
This signals weakness in the medium trend and give rise to risk of further downward movement.
For immediate term, the FKLI would attempt to climb above the 50-day SMA line to resume the upside movement.
RHB maintains bullish stance until the 1,430-pt support is breached.
Malacca Securities (MSSB) said the FBM KLCI (-0.21%) closed lower in line with the regional market performances on the back of the lacklustre economic outlook from China and negative Wall Street’s overnight performance.
On the broader market, the Finance sector (+0.14%) rose, while the Energy sector (-1.73%) fell amid soft Brent price.
Global markets: Wall Street ended higher as investors are awaiting the outcome of the non-farm payroll later tonight, after a tick up in the initial job claims data and softer job openings.
Both The European & Asian stock markets ended lower, the latter dragged by Chinese trade data missing expectations.
