Weekly Chart Update 25/4/2020

Technically, the following 3 markets namely US, Malaysia and Singapore are all in bear market with short term rebound. As indicated in the GMMA technical indicator, these markets are struggling to break out of the bear trend.

S&P500

The S&P 500 fell 38pts or -1.3% for the week at 2836. The index has remained above the 20 day MA but below the long term 200 day MA resistance line. The week started with WTI crude oil May futures contract closed at negative USD37 per barrel as speculators who bought the futures contract were desperately looking for buyers who were willing to buy the contract from them at any cost, as these speculators didn’t expect the WTI fell so much and they didn’t want to take the physical delivery as there is just no more storage for them to keep the oil. Hence, we saw the Crude oil futures turned negative for the first time in history. This black swan event has exposed the vulnerability of the crude oil industry due to the Covid-19 pandemic that curtail all the demand for oil. Next week the S&P 500 may continue with the retracement and support is seen at 2750, resistance 2875.


KLCI

 

The KLCI fell 38pts or -2.7% for the week at 1369. The index has remained on above the 20 day MA but below the 200 day MA. Our KLCI retraced due to the collapse of the crude oil futures. Currently, the index is resting on the 20 day MA, should the index move below this support line, it become short term bearish for the market. In addition, the extension of the MCO to further 14 more days will mean more harm to the economy but this is necessary as we treasure human lives more. Hence, you will see our market moving 3 steps forward and 2 steps backward, mare like a horizontal trend but on a upward bias. Next week support is seen at 1340, resistance 1400.

STI:

 

The STI fell 96 pts or -3.6% for the week at 2518. The index is short term bearish now as it is below both its 20 day and 200 day MA. The Covid-19 confirm cases has remained high daily in the migrant community. Singapore's industrial output beat market expectation and rose 16.5% in March on a year-on-year basis vs -0.7% in Feb,  as pharmaceutical production more than doubled. Next week support is seen at 2475, resistance at 2575.