Tuesday, June 14, 2011

FBM KLCI: A Close Above 10-Days SMA Will Enhance Confidence

Bursa Recap: KLCI rises 2.6 points, in line with stronger regional markets
Asian markets were higher on Tuesday after China released better May IPI of 13.3% (consensus: 13.1%), evidence that its economic growth remains on track. Separately, China's May CPI jumped to 34-month high of 5.5%, supporting the case for tighter monetary policy with inflation remaining the top priority for China's leaders.

The FBM KLCI gained 2.6 pts to 1,548.5, lifted by AXIATA (+5 sen to RM4.89), MISC (+15 sen to RM7.11), IOICORP (+5 sen to RM5.29), PETGAS (+16 sen to RM12.12) and GENM (+4 sen to RM3.56).

FBM KLCI outlook: A close above 10-d SMA will enhance confidence
The overnight Dow’s 1% technical rebound could boost sentiment across Asian markets and Bursa Malaysia today. A more sustainable Dow Jones rebound will follow if the 5-d SMA cuts above the 10-d SMA.

Overall, the ability of KLCI to defend our envisaged 50-d SMA support (now at 1,539) is a positive signal that the index could march higher once the triangle consolidation ends. Immediate supports are seen around 1,541 (30-d SMA) and 1,539 (50-days MA).

A successful close above the 10-d SMA (now 1553) will boost our chances to retest the 1,566-1,577 resistance zones sooner.

Daily KLCI: A Rebound Above 10-Days SMA Will Boost Chances Of Retesting 1566-1577 Zones
FBM KLCI 15-06-2011

Source: HLeBroking

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