Thursday, August 25, 2011

KLIC Trading: Cautious Ahead Of Long Holidays & Bernanke Speech

Bursa Recap: KLCI drops 4.4 points, bucking regional uptrend
Asian markets were higher following another overnight rally on Wall Street, helped by higher durable-goods orders and ahead of a Bernanke speech that many hope will outline plans to kick start the ailing US economy.

Bucking the regional gains, the FBM KLCI lost 4.4 points, its 4th declines in five days ahead of the long holidays next week (i.e. Hari Raya and Merdeka with only 1-1/2-day of trading).

FBM KLCI Outlook: Cautious ahead of long holidays and Bernanke speech
In the wake of unresolved external woes, moderating global economic growth outlook and long holidays next week, we remain vigilant and would like to caution investors about potential kneejerk correction on Bursa Malaysia if Bernanke speech tonight fails to live up to market expectations. Immediate resistance levels remain near 1500-1530.

The bearish engulfing candle formation on 24 Aug, negative technical readings and the failure to defend supports at 1470 and 50% FR (at 1467 points) yesterday could exert more downward pressure on the FBM KLCI. A breakdown below 61.8% FR (now at 1456) subsequently will pressure the index to retest 1443 (76.4% FR) and 9 Aug pivot low at 1423 points.

Daily KLCI Is Heading Towards Lower Bollinger Band
FBM KLCI 26-08-2011

Source: HLeBroking

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