Bursa Malaysia is not healthy

Bursa Malaysia certainly was not pretty today with the much awaited budget causing investors to be vary, the index fell 20.85 points, a -1.14% decline to close at 1808.88 points today. This level is a 6 month low for Bursa.

From a purely technical point of view, the index failed to break its resistance at 1880 points. Chartists would have noticed a triple top formation, testing resistance once in August and twice in September. Buying power was not powerful enough to propel Bursa to the 1900 mark.

The first Williams %R crossover was on 25/08 alerting investors of a potential sell. This trend repeated itself on 29/08 and 10/09.

The moving average convergent divergent (MACD) indicator had prominent crossovers of the red signal line as early as mid July and mid September to confirm the Williams %R results .

Expect the new support to be at a wobbly 1800. Monday is a crucial period to see where Bursa will head post budget 2015.

This is a historic comparison of the index in 2012, 2013 and 2014. The present level is approaching dangerously close to where the index was last year.