Monday, April 11, 2011

FBM KLCI: Profit Taking Consolidation Will Be Well-Absorbed

Bursa Recap: KLCI ends +2 points wow ahead of Invest Malaysia
Regional markets ended higher last week as rising M&As and improving U.S. economy bolstered optimism of a sustainable global economic recovery.

Sentiment was also boosted as Japan pledged support for businesses hit by the Mar 11 earthquake and made progress stabilizing the nuclear power plant.

The FBM KLCI was down 4.4 points last Friday as the euphoria on April 12-13 Invest Malaysia (IM) subsided after peaking at intraweek high of 1565 points. However, it managed to end marginally higher wow by 2 points to record its 4th straight weekly gains.

FBM KLCI outlook: Profit taking consolidations will be well-absorbed
The index could rise higher to retest all time high of 1577 points this week, given the positive expectations from the IM conference, which could showcase ETP progress and new initiatives, as well as new mega listings to attract foreign funds to Malaysia.

Nevertheless, profit taking consolidations could come in later part of the week amid overbought technical readings and ahead of the Apr 16 Sarawak election.

Immediate resistance remains at 1,565 (last week’s high), followed by all time high of 1577 points and 1600 psychological barrier. Immediate support levels are situated around 1552 (23.6% FR), 1544 (10-d SMA) and 1538 (38.2% FR).

FBM KLCI Will Has More Profit Taking Consolidations If 5-Days And 10-Days SMAs Are Broken.
FBM KLCI 11-04-2011

Source: HLeBroking

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