Tuesday, September 20, 2011

KLCI Crucial 1400 Support With Potential Technical Rebound

Bursa Recap: FBM KLCI recorded a 4th straight losses
Asian stocks fell after S&P downgraded Italy’s sovereign-credit ratings. However, losses in stocks were limited by speculation that Fed will propose measures to boost U.S. economy when it concludes the meeting today. Tracking the regional losses, FBM KLCI closed 2.5 pts lower (from as much as -9 pts intraday) at 1410.6, the lowest level since 27 Aug 10, led by rotational selldown in key bluechips but partly offset by bargain hunting.

FBM KLCI Outlook: Crucial 1400 support to prevent further slump
Concerns of a possible double-dip recession in the U.S. and the lingering European debt crisis will keep investors nervous and sentiment fragile. Therefore, persistent foreign liquidation activities may continue to depress our market in the short term,
reflected by the rotational fierce selldown on key bluechips and a 6.9% plunge in Ringgit to RM3.13/US$.

Critical level to watch is the 1400 psychological support as a break below will trigger further pressures towards 1367 points (61.8% FR from peak 1597 and low 1224). However, some technical indicators are suggesting potential technical rebound
with immediate resistance areas at 1444 (10-D SMA) and 1457 (mid Bollinger band).

Hourly KLCI: Technical Rebound In The Offing
FBM KLCI 21-09-2011

Daily KLCI: Potential Technical Rebound Targets Are 1444-1457
FBM KLCI 21-09-2011a

Source: HLeBroking

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