Monday, September 5, 2011

KLCI Brace For Another Volatile Week

Bursa Recap: KLCI jumps 27 points to end 2% higher wow
Asian stocks were in a sea of red last Friday ahead of crucial U.S. employment data, as investors took profits after strong gains recorded in the early part of the week. Sentiment was also dampened by news that Greece will miss its 2011 deficit target of 7.6% underscored concerns about the euro zone debt crisis.

Bucking the sluggish regional markets, FBM KLCI surged 27 points, playing catch up to the rebound in global markets during the three-day Hari Raya and Merdeka holidays.

FBM KLCI Outlook: Brace for another volatile week
Despite last week’s strong rebound, Asian markets and Bursa Malaysia are set to open lower today, in line with the slump on Dow Jones last Friday. The pessimistic remark by World Bank that the global economy is stepping into a "new danger zone," amid
slower growth and weakening investor confidence will further heighten volatility in this week’s trading.

Given the external woes, we continue to advocate investors to stay defensive or sidelines. Alternatively, for risk-takers, adopt a short term trading oriented approach to buy on sharp falls in share prices and sell into any rebound.

Weekly support levels are at lower Bollinger band of 1441 points and YTD low of 1423 points whilst resistance zones are situated near 1488 (mid Bollinger band) and 1500 psychological mark.

Daily KLCI Has More Upside If 10-Days SMA Is Violated As Indicators Are Hooking Upwards
FBM KLCI 05-09-2011



Source: HLeBroking

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