Monday, February 28, 2011

More Consolidation Ahead In Weekly Dow Jones, Any Technical Rebound Will Be Capped At Mid Bollinger Band.

Last Friday, regional markets had technical rebounds on bargain hunting activities, on rumours that embattled Muammar Gaddafi had been shot as well as on Saudi Arabia's reassurances that it could counter Libyan supply disruptions.

Contrary to the steadier regional marts, the FBM KLCI extended its losses (-0.6 point to 1489.3) for the 4th straight day after rising as much as 9.6 points intraday. Wow, the KLCI dropped 1.9%, smaller than its regional peers such as NIKKEI (-2.9%), Sensex (-2.8%), HSI (-2.5%), Kospi (-2.5%) and STI (-2%).

Market breadth was positive as gainers led losers by 524 to 300. Trading volume and value tumbled 31% and 32% to 1.39 billion shares valued at RM1.79 billion, respectively.

With no clear end to the geo-political turmoil in the Mideast, local investors are erring on the side of caution, as contagion spread to other oil producing countries could easily bring more fear into the stock and oil markets. Hence, the mood on Bursa Malaysia is extremely sensitive and it is going to be a bumpy ride ahead.

Due to weak daily and weekly technical readings, any rebound is likely cap at 1513 (61.8% FR), 1516 (Mid Bollinger Band) and 1525 (50% FR). On the other hand, lower support levels are situated around 1474 (3M low), 1450 and 1432 (200-d SMA).

Weekly KLCI: More Consolidation Ahead In Weekly KLCI.
FBM KLCI 28-02-2011

Daily KLCI: Any Technical Rebound Will Be Capped At Mid Bollinger Band.

FBM KLCI 28-02-2011a

Source: HLeBroking.

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