The local bourse has been on a general downtrend since early Feb after it failed to climb past its 50-d MA. Nevertheless, it still settled 38.91pts (+0.58%) higher at 6,794.86. It closed just a touch higher than its 100-d MA of 6,777.74.

There was a positive market breadth, 121-96, but the gainers and losers were evenly split between the sectors. The Financials (+2.90%) led the winners, while the Holdings (-1.00%) pulled back the most.

The indicators are uniformly bearish, but the momentum isn’t as strong.

Technical Indicators:

  • MACD – Bearish divergence with muted momentum
  • DMI – Increasing selling pressure
  • RSI – In the selling region with a slight upward bias

Recommendation

Buy when support holds.

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