Friday, June 10, 2011

KLCI Attempting To Close Above 10-Days SMA

Bursa Recap KLCI ends -0.9-point for a 4th consecutive decline
Regional markets ended mixed, led by the dour Fed outlook on the US economy and 1.7% decline on SHCOMP after the money-market rate rose to the highest level in June on speculation that the central bank will lift interest rates to help tame inflation.

The FBM KLCI gave up its 1.9-pt gain to end 0.9-pt lower. Sentiment was also cautious ahead of April’s IPI, which saw a 2.2% dip yoy and 7.6% mom, following the Japanese earthquake and slower global economic growth.

FBM KLCI outlook: KLCI: Attempting to close above 10-d SMA
We reiterate that our market will continue its sideways consolidation amid a dearth of positive catalysts. However, overall market tone will remain firm as expectation of continued strength in private investments, acceleration of ETP projects and speculation of a snap election by end 2011 would help to buffer external setbacks.

Following the breach of 10-day SMA (now at 1553), better retracement supports are situated around 1545 (mid Bollinger band) and 1538 (50-d SMA). Sentiment will turn bearish once these supports are broken.

We still believe that benchmark is likely to scale higher towards its 1566 (May’s high) and 1577 (all time high) overhead resistances once this consolidation is over.

Daily KLCI : Moving Sideways Within The 10-Days SMA And 50-Days SMA
FBM KLCI 10-06-2011

Source: HLeBroking

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