Tuesday, May 3, 2011

FBM KLCI Is Upward Bias On Impending Golden Cross In MACD

Bursa Recap KLCI down 0.4 point after rising four straight days.
After rising as much as 5.7 points intraday, the FBM KLCI lost 0.35 point last Friday to 1535 amid profit taking activities ahead of the long holiday weekend till 2 May. Trading volume decreased to 852m shares worth RM1.26 billion as compared to Thursday’s 925 million shares worth RM1.4 billion.

Wow, the FBM KLCI inched up 12 points or 0.8% despite big surge in external markets, especially Dow (+2.4%) rising close to a three-year high on strong corporate earnings and Fed promise of keeping policy easing steady and interest rates accommodative.

FBM KLCI outlook: Focus on MPC meeting and the May earnings season.
In line with the strong Wall St and regional markets last week, the FBM KLCI managed to eke out a 12 pts gain wow but still unable to break the 1544 (76.4% FR) resistance, signaling a continue base building process.

However, the index could inch higher this week in the wake of firmer technical readings, with immediate resistance levels at 1544-1550. Further upside will depend on the economic outlook and monetary policy guidance from the forthcoming 5 May BNM monetary policy committee (MPC) meeting.

Support levels are 1524 (100-d SMA), 1520 (50-d SMA) and 1511 (lower Bollinger band).

Upward Bias On Impending Golden Cross In MACD
FBM KLCI 03-05-2011


Source: HLeBroking

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