Monday, April 25, 2011

FBM KLCI Is Sideways Consolidation While Awaiting Fresh Catalysts

Bursa Recap: KLCI falls further on lack of fresh leads
Last Friday, regional markets ended mixed with most closed for the Good Friday holiday amid concerns over the impact of China’s aggressive policy tightening amid rising inflation.

The local bourse also extended its sideways consolidation with the FBM KLCI eased 3.6 points to 1522.8 amid concern of a possible hike in OPR as early as May when the BNM meets on 5 May following soaring inflation in February and March.

FBM KLCI outlook: More sideways consolidation
The FBM KLCI jumped to as high as 1535 pts last week amid a relief rally post Sarawak election and strong overseas markets. Nevertheless, the momentum waned and index tumbled to as low as 1515 following the higher-than-expected March CPI report before ending flat at +0.1% week-on-week.

Technically, save for the daily slow Stochastics indicator which offers a slight hope of technical rebound upside this week, the renewed downtrend in MACD and RSI coupled with the close below short term downtrend line (DTL) as well as 5 and 10-day SMA lines could signal more sideways consolidation ahead.

Support levels are 1513 (61.8% FR), 1508 (lower Bollinger band) and 1500 whilst upside resistance levels are 1530 (DTL), 1537 (38.2% FR) and 1552 (23.6% FR).

FBM KLCI Is In Consolidation Again As Index Retraces Below The 5-Days, 10-Days SMAs And Downtrend Line.
FBM KLCI 25-04-2011


Source: HLeBroking

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