MALAYSIA KLSE COMPOSITE INDEX

Malaysia KLSE Composite index formed a head and shoulder chart pattern. Head and shoulder top is a reversal chart pattern and it is bearish. Today the index slipped below the neckline at 1,770 level. Consecutive daily closes below the support at 1,770 level will confirm the breakdown and possibly push the index towards 1,650 levels in the following weeks. Negative view for the Malaysian equities is confirmed by the weakness in the local currency which breached 3.37 resistance over the past few days. Breakout from a year-long sideways consolidation range can result in further weakness towards 3.55 levels for the Malaysian ringgit.

Financial sector performance has been weak and below are some of the names that experienced major breakdowns.