Wednesday, September 7, 2011

FBM KLCI Shows a Sense of Calmness To Return

Bursa Recap: KLCI jumps 10.2 points on technical rebound
Asian markets staged a strong technical rebound after tumbling in the last two days, prompted by better U.S. ISM services index, strong Australian economic data and market talk that China might relax its tight monetary policy.

Sentiment was also boosted higher opening in Europe markets following a ruling by Germany’s top court that the country could participate in regional rescue plans and the Italian Senate’s approval of an austerity plan helped offset fears about Europe.

FBM KLCI Outlook: A sense of calmness to return
A sense of calmness is likely to return following the strong rebound on Wall St and Europe markets overnight.

A strong close above the mid Bollinger band (at 1476 points) on high volume would spur the index to retest the 1500 psychological level (which also coincides with the 30-day SMA at 1501). However, significant resistance levels still remain at 1510
(upper Bollinger band) and 1529 (200-d SMA).

Short term supports are 1444 points (lower Bollinger band) with further support at YTD low of 1423, followed by 1400.

Daily KLCI Shows Technical Rebound Towards 30-Days SMA
FBM KLCI 08-09-2011

Hourly KLCI Hows Bullish Indicators
FBM KLCI 08-09-2011a

Source: HLeBroking

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