Monday, March 28, 2011

Daily KLCI Has More Upside After The Breakout, KLCI To Retest 1525-1530 Points Resistance This Week

Bursa Recap: KLCI inches up 1.7 points in a tight range movement
Regional markets ended higher owing to Dow Jones’s overnight gain last Thursday as fears about Japan's damaged nuclear plants eased. However, concerns of a strong February CPI numbers capped the index upside to only marginal 1.7 points.

After the market, the statistics dept announced the Feb CPI rose by 2.9% year-on-year, higher than expectations and its fastest pace in almost two years, raising the possibility of the BNM hiking interest rates at its next meeting on May 5.

Week-on-week, FBM KLCI added 0.8%, the lowest in Asia as the index tumbled the least since the 11 march’s Japan’s massive earthquake.

FBM KLCI outlook: To retest 1525-37 points resistance in the short term
Negative external headlines including the protracted nuclear crisis in Japan, problems in Portugal and turmoil in the Middle East will continue to haunt investors in the short term.

Nevertheless, further improvement in technical readings and expectations of more positive announcements in the upcoming April Invest Malaysia event are expected to keep the broader market alive and resilient.

Moreover, a resounding victory for Barisan Nasional in the upcoming Sarawak election on 16 April is another wild card that could boost the market sentiment in anticipation of a general election in 2H11.

Short term key support levels are 1500 and 1485 (lower Bollinger band) while resistance levels are situated at 1527 (upper Bollinger band) and 1537 (38.2% FR).

Daily KLCI Has More Upside After The Breakout.
FBM KLCI 28-03-2011

Source: HLeBroking

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