Note:
The following analysis involves Advanced Technical And Inter-Market Analysis.
It requires reading meticulously, thorough absorption of the materials slowly and some critical thinking processes.
Assimilate the materials well to pick up some advanced techniques here.
Chart 1
iShares MSCI Malaysia Index:
27 December 2013, Friday, 1.30am Singapore Time
Chart courtesy of StockCharts.com
Chart 2
Malaysia ETF listed in the US Market (New York Stock Exchange), EWM: NYSE
27 December 2013, Friday, 1.30am Singapore Time
Chart 3
Malaysia Kuala Lumpur Composite Index (KLCI):
27 December 2013, Friday, 1.30am Singapore Time
Chart courtesy of Yahoo Finance
However, based on Price Actions in Wall Street:
1. Malaysia Index ETFs (EWM:NYSE) and iShares MSCI Malaysia Index are some distance below May-2013 Highs (Chart 1 and Chart 2).
2. iShares MSCI Malaysia Index is below the 50DMA & 200DMA, both of which are acting as resistances with selling pressure now (Chart 1).
3. iShares MSCI Malaysia Index has all the bearish structures as illustrated in Chart 1 above.
4. Malaysia Index ETF listed in the US Market, EWM: NYSE, is restricted by the 50DMA as resistance now (Chart 2).
5. Malaysia Index ETF listed in the US Market, EWM: NYSE, is restricted by the High Volume Resistance Zone 1 and High Volume Resistance Zone 2 as illustrated in Chart 2 above.
6. Malaysia Index ETF listed in the US Market, EWM: NYSE, has a lot of bearish volumes as illustrated in Chart 2 above.
7. Malaysia KLCI Stocks show non-bullish volume and more stealthy unloading volumes for 2013 (Chart 3).
Wall Street Professionals currently have different valuation viewpoint of the Malaysian Stocks & Equities Market based on current existing market conditions.
8. Either KLCI is significantly over-valued right now or both the NYSE-listed Malaysia Index ETFs (EWM:NYSE) and iShares MSCI Malaysia Index are significantly under-valued (Chart 1, Chart 2 and Chart 3), which brings an interesting question of who is right: Wall Street Professionals or Malaysia Market in Malaysia?
9. Based on Chart 3 (KLCI), the current volume changing hands is a rather risky one. The actions in US suggests KLCI and FKLI is over-valued. When the buyers at the high want to sell, there may not be enough buyers to match based on current market conditions. This often leads to panic sell-off.
10. Malaysia Stocks and Equities Market needs a sell-off correction in wash-out style in order to stay healthy. Bearish-biased in the short-mid term. Any rally is a sell into the high/optimism.
KLCI just closed above 1870 through close time matching.........
ReplyDelete