KLCI was moving lower from 1326 and closed at 1307 level last friday, the sold down was mainly due to the weakness from US & EU markets. Most of the data like consumer confidence drop, new home sales plunge 30%, umemployment claims increase again indicating the global recovery is losing steam after governments stimulus packages ended. However, the Asian markets like Singapore, Hong Kong, Korea & Malaysia were holding quite well over the profit taking. There was a surprise our government increased the tax rate from 6% to 8% for the gaming sectors, this directly diluted the earning of the gaming companies like Tanjong, Bjtoto, MPHB. The market sentiment has changed to bearish immediately after KLCI index dropped below 20day & 50day moving average lines.
Technical analysis
The KLCI index dropped below middle Bollinger line, it stayed below 20day & 50day moving average lines, MACD is forming Rounding top.
Strategy
Bearish, wait for next bargain opportunity. Set and prepare to cut loss, sell on strength.
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