Alpha Edge - MAXJ below 200-day SMA
The MSCI Asia ex-Japan (MAxJ) has just broken below the 200-day SMA, which is not a good sign. If we are right about the near-term dollar weakness, crude oil price should find its short-term bottom soon. US$58 is the major support for crude oil. Malaysia’s KLCI could be forming a head & shoulder (H&S) with the H&S target at 1,638.
Asia remains under pressure
All is still not well in Asia. After trading sideways over the past few weeks, the MSCI Asia ex-Japan (MAxJ) broke below the 200-day SMA (currently at 570pts). A break below the last major low of 549pts would be another negative for the MAxJ. The medium-term trend remains down for Asia. However, the medium-term trend still looks up for now for China and Japan.
Crude oil to find short-term bottom soon?
The dollar’s rally could be over for now as the daily MACD and RSI technical indicators have been showing strong negative divergence signs since Oct and a break below the immediate support trendline (at 87.5) would strengthen our view that the dollar rally is taking a pause. Crude oil price has corrected more than we expected over the past few weeks and the weekly RSI is extremely oversold at only 12. The major support level is around US$58. If we are right about the near-term dollar weakness, crude oil price should find its short-term bottom soon.
Malaysia’s KLCI forming head and shoulder?
The weekly chart for Malaysia’s KLCI shows a potential bearish head & shoulder (H&S) formation with the H&S target at 1,638-1,640pts. However, it is still too early to tell if the KLCI is following this pattern. FBM Small Cap’s monthly chart shows that the MACD has turned negative, with the key major support at 14,700.
Source: CIMB Daybreak - 15 December 2014
The MSCI Asia ex-Japan (MAxJ) has just broken below the 200-day SMA, which is not a good sign. If we are right about the near-term dollar weakness, crude oil price should find its short-term bottom soon. US$58 is the major support for crude oil. Malaysia’s KLCI could be forming a head & shoulder (H&S) with the H&S target at 1,638.
Asia remains under pressure
All is still not well in Asia. After trading sideways over the past few weeks, the MSCI Asia ex-Japan (MAxJ) broke below the 200-day SMA (currently at 570pts). A break below the last major low of 549pts would be another negative for the MAxJ. The medium-term trend remains down for Asia. However, the medium-term trend still looks up for now for China and Japan.
Crude oil to find short-term bottom soon?
The dollar’s rally could be over for now as the daily MACD and RSI technical indicators have been showing strong negative divergence signs since Oct and a break below the immediate support trendline (at 87.5) would strengthen our view that the dollar rally is taking a pause. Crude oil price has corrected more than we expected over the past few weeks and the weekly RSI is extremely oversold at only 12. The major support level is around US$58. If we are right about the near-term dollar weakness, crude oil price should find its short-term bottom soon.
Malaysia’s KLCI forming head and shoulder?
The weekly chart for Malaysia’s KLCI shows a potential bearish head & shoulder (H&S) formation with the H&S target at 1,638-1,640pts. However, it is still too early to tell if the KLCI is following this pattern. FBM Small Cap’s monthly chart shows that the MACD has turned negative, with the key major support at 14,700.
Source: CIMB Daybreak - 15 December 2014
