Sunday, March 13, 2011

Daily KLCI May Retest The Lower Bollinger Band Before Staging A Rebound.

KLCI Recap: KLCI falters amid Dow Jones’s 1.9% fall and Japan’s quake.
Asian markets were in a sea of red, rattled by an overnight 1.9% plunge on Dow Jones as well as an unexpected earthquake and massive tsunami in Japan last Friday.

The FBM KLCI gapped down 8.9 points in the opening and losses accelerated to 21.9 points or 1.4% (wow: -1.8%) at 5pm. Trading volume decreased to 1.02 billion worth RM1.85 billion against Thursday’s 1.09 billion shares valued at RM1.85 billion. Market breadth was negative with 118 gainers as compared to 678 losers.

KLCI Outlook:May retest lower Bollinger band before rebound.
Amid last Friday’s 1.4% fall and a 1.8% weekly plunge, optimism of a sustainable rebound from the 1474-pt low was temporary halted, as a futile attempt to penetrate the 50-d SMA and upper Bollinger band prompted investors to book profits last week.

Technically, the momentum and trend indicators have turned bearish and the index could revisit the lower Bollinger band or even the recent low of 1474 points recorded on 28 February 11 again before staging another rebound.

This week, the KLCI likely to trade range bound within 1474-1520 points. Average daily volume will linger around 800 million to one billion shares, as investors remain cautious of the external headwinds and local school holiday.

Daily KLCI May Retest The Lower Bollinger Band Before Staging A Rebound.
FBM KLCI 14-03-2011

Weekly KLCI Is Likely To Trade Rangebound Within The 1470 To 1530 Band In The Short To Medium Term.
FBM KLCI 14-03-2011a

Source: HLeBroking

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