Wednesday, April 27, 2011

KLCI Is Awaiting Fresh Catalysts To Stage A Decisive Breakout

Bursa Recap: KLCI bucks negative regional markets
Regional markets ended lower amid concerns over the impact of China’s aggressive policy tightening to curb inflation and ahead of the 26-27 April FOMC meeting.

Despite negative regional markets, FBM KLCI rose 3.3 points, driven by last minute push on FBM 30 stocks as the Ringgit rose further to 13-year high at RM2.987/US$.

Sentiment remained negative with losers beat gainers by 470 to 280 while daily volume was thin at 1.06 billion shares.

FBM KLCI outlook: Awaiting more fresh leads to drive index higher.
The FBM KLCI has been building its base above the lower Bollinger band (LBB) and hovering around 30-d SMA. Technically, this sideways consolidation trend is expected to continue for a while ahead of the outcome of FOMC meeting, May reporting season and 5 May MPC meeting.

Longer term, we are positively biased, as once this consolidation ends, index should stage an attempt to break out from the 1537-1544 immediate resistance range and retest April’s high of 1565 points.

Support levels are 1515 (April’s low) and 1510 (LBB).

Daily KLCI Shows A Breakout Above The Down-Trend-LIne (DTL) Will Spur Index Higher To 1537-1544 Points.
FBM KLCI 27-04-2011

Source: HLeBroking

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