Thursday, April 28, 2011

KLCI To Continue Sideways Consolidation Above 50-d SMA

Bursa Recap: KLCI rose 2.6 points, off intraday high of 7.4 points
Despite opening higher amid overnight Dow’s 0.9% gain, Asian markets ended mostly lower Wednesday, with investors’ mood shifting to caution ahead of the highly anticipated FOMC meeting, rising inflations, Standard & Poor’s warning on Japan’s debt and potential new round of tightening measures in China.

Bucking the mixed regional markets and rising for the 3rd straight days, FBM KLCI inched up 2.6 pts on index-linked buying, as Ringgit appreciated further to 13-year high at RM2.978/US$.

Leading Movers were GENTING (+16 sen to RM11.66), AMMB (+5 sen to RM6.39), CIMB (+2 sen to RM8.22), YTL (+2 sen to RM1.70) and SIME (+2 sen to RM9.07)

FBM KLCI outlook: Consolidating above 50-d SMA
The FBM KLCI has been building its base above the 50-d SMA after reaching April’s high of 1565 pts. We expect FBM KLCI to react positively to the Fed statement and steady gains on Dow overnight, and is likely to retest higher resistance levels of 1537 (mid Bollinger band) and 1544 (23.6% FR).

Further upside will depend on the economic outlook and monetary policy guidance from the forthcoming 5 May BNM monetary policy meeting. Support levels are 1515 (April’s low) and 1510 (lower Bollinger band).

Source: HLeBroking

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