Tuesday, March 1, 2011

Daily KLCI Immediate Rebound Will Be Capped At Mid Bollinger Band.

KLCI technical rebound is likely to continue.

Yesterday, after last week’s sell-off, regional markets rebounded on reports that oil shipments from Libya’s rebel-controlled eastern territory may have resumed, even as political unrest spread to Oman. In line with the recovery, the FBM KLCI inched up nearly 2 points to 1493.4 after suffering heavy intraday losses of 15 points.

However, the ongoing political turbulence in Mideast and renewed tension in North/South Korea dampened investor’s confidence, as trading volume plunged 33% to 1.16 billion shares yesterday against average of 1.73 billion shares last week.

Market breadth was negative with 228 gainers vs. 626 losers.

Following the sharp rebound yesterday from 3M low of 1474 points and above the low Bollinger band (1483 points) coupled with improving Wall St and regional markets from last week’s selldown, the technical rebound is likely to continue.

However, as local investors are still erring on the side of caution amid easing volume, the mid Bollinger band (1514) is going to act as an immediate resistance, followed by 1525 pts (50% FR from all time high of 1577 and 1474). Meanwhile, support levels are situated around 1483, 1474 (3M low) and 1450.

Daily KLCI Immediate Rebound Will Be Capped At Mid Bollinger Band.
FBM KLCI 01-03-2011


Source: HLeBroking

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