Wednesday, April 20, 2011

KLCI Is Trying To Form A Base Above The 1500 Levels

Bursa Recap: KLCI down 6.4 points amid overnight plunge on Dow Jones
The FBM KLCI gapped down 7.7 points and slumped as much as 13 points in the morning session following a plunge on Dow last Friday.

However, it managed to pare down some of the losses to end at 6.4 points lower at 1521.5, boosted by the announcement of 12 ETP projects with RM11.16 billion in investments. Market breadth was negative with 295 gainers as compared to 455 losers.

FBM KLCI outlook: Trying to form a base above the 1500 points
In the wake of a resilient close by Wall Street overnight, the FBM KLCI may attempt to fill the 7.7-point gap-down formed yesterday.

However, further rally to retest April’s high of 1565 points looks slim as trading volume is thin amid cautious sentiment, affected by external developments i.e. global economic growth, 1Q earnings season in U.S., rising oil prices and interest rates, Japan’s earthquake and nuclear crisis and the re-emergence of Europe’s debt crisis. Moreover the FBM KLCI is still below its 10-day SMA and mid Bollinger band.

Upside resistance levels are 1534 (mid Bollinger band), 1537(10d- SMA) and 1552 (23.6% FR) whilst major support levels are situated around 1513 (61.8% FR) and 1500.

Daily FBM KLCI Has More Consolidations As KLCI Index Is Still Below The 10-Days SMA And Mid Bollinger Band.
FBM KLCI 20-04-2011

Source: HLeBroking

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