Tuesday, July 5, 2011

FBM KLCI Is Taking A Breather

Bursa Recap: KLCI ends flat for a 2nd day
Asian stocks were mixed after Moody's said China’s government debt burden may be larger than auditors had estimated and earlier warning by S&P that proposals to help Greece with a new bailout could still amount to a selective default.

The FBM KLCI closed flat (-0.5 point at 1581.9) for the 2nd consecutive day amid cautious sentiment arising from profit taking activities and the Bersih rally on 9 July. Losers led gainers by 386 to 319 while daily volume stayed low at 729 million shares valued at RM1.46 billion.

FBM KLCI Outlook: Taking a breather
After hitting all time high at near 1590 points, the local bourse is expected to trend sideways amid overbought slow Stochastic reading, the Bersih rally on 9 July and in anticipation of a more choppy Wall St in the short term.

This healthy breather will build a stronger platform for further advance (which must be accompanied by much higher volume). Key immediate supports are 1573 (10-d SMA) and 1560 (uptrend line support). Immediate resistance levels are 1590-1600.

Daily KLCI Short Term Uptrend Remains Intact If Up-Trend-Line (UTL) Support Is Not Broken
FBM KLCI 06-07-2011

Source: HLeBroking

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