Thursday, June 2, 2011

KLCI: Follow-Through Momentum Will Be Temporary Disrupted If 10-Days SMA Is Broken

Bursa Recap: KLCI bucks regional markets fall to end 1.6 points higher
The 2.2% overnight plunge on Dow sparked a major sell-off in the regional markets as a steady stream of soft data from major economies has put a damper on risk-taking ahead of Friday's U.S. payrolls report.

In line with the sluggish overseas markets, FBM KLCI dipped as much as 4.3 pts but closing marginally higher by 1.6 points to 1558. Leading movers were PETGAS (+60 sen to RM11.98), GENTING (+14 sen to RM11.10), MAXIS (+11 sen to RM5.53), MISC (+9 sen to RM7.00) and YTL (+3 sen to RM1.63).

However, market breadth was negative with 250 gainers as compared to 471 losers while trading volume and value eased 10% and 15% to 734m shares worth RM1.49bn, respectively.

FBM KLCI outlook: FBM KLCI: Risk aversion returns

Despite the lackluster 1Q11 reporting season and sluggish regional markets, our local bourse performed commendably as the KLCI rose +1.7 points yesterday, in anticipation of a better 2H outlook as the ETP is gaining traction and more encouraging newsflow should pick up pace.

As sentiment turns more cautious, the sustainability of the current follow-through momentum will be temporary disrupted should the 10-d SMA (1544) and mid Bollinger (1537) band supports are broken. A breach below these levels will trigger more selling waves towards 50% FR (around 1525 points), and the index will resume its sideways consolidation again.

Tough resistance levels are 1565-1577 points.

Daily KLCI: Follow-Through Momentum Will Be Temporary Disrupted If 10-Days SMA Is Broken
FBM KLCI 03-06-2011

Source: HLeBroking

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