Thursday, July 28, 2011

FBM KLCI : Volatility To Continue

Bursa Recap: KLCI drops 6.3 points, recovering from -13.2 points intraday
Asian markets continued to slide as fears grew that the U.S. could fail to achieve a debt deal by 2 August.

Tracking the regional markets fall, the FBM KLCI tumbled as much as 13.2 points before paring its losses to 6.3 points to close at 1551.9. Market breadth was negative with losers thumping gainers by 480 to 290.

Lagging movers were CIMB (-8 sen to RM8.31), PETCHEM (-9 sen to RM6.83), MISC (-9 sen to RM7.74), PBBANK (-4 sen to RM13.42) and SIME (-3 sen to RM9.15).

FBM KLCI Outlook: Volatility to continue
Following the overnight 1.6% plunge on Dow Jones, FBM KLCI broke last week’s low of 1552 points and tested the 100-d SMA near 1545 points yesterday, before recovering its losses to close at 1551.9.

The hammer formation yesterday could be a positive reversal signal as it appears that the index is trying to form a base near the 100-d SMA.

If prices can hold above this level for the next few days, there is a good chance that it may re-test upside resistance at 50-d (1562) and 30-d (1571) SMAs. However, if the 100-d SMA is broken, selling pressures will intensify and index will head towards 1536 (50% FR) and 1529 (200-d SMA) zones.

Daily KLCI: Downtrend Could Reach Its Tail End With A Hammer Formation
FBM KLCI 29-07-2011

Source: HLeBroking

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