Thursday, November 10, 2011

FBM KLCI Is Having A Weakening Technical Readings

Bursa Recap: KLCI tumbles 17 points in line with sluggish regional marts
Asian markets tumbled amid concerns of China’s economic slowdown on slowing exports and soaring Italian bond yield that could trigger mounting debt crisis in Europe and eventually breaking up the Euro.

Tracking the sluggish sentiment, FBM KLCI slid 16.99 points to 1472.7, due to the heavy losses by GENTING (-32 sen to RM10.68), IOICORP (-12 sen to RM5.05), CIMB (-10 sen to RM7.26), TENAGA (-13 sen to RM5.79) and AXIATA (-6 sen to RM4.90).

FBM KLCI Outlook: Formidable resistance near 100-d & 200-d SMAs
We reiterate our view that in the wake of external wild swings driven by headlines, investors should SELL INTO RALLY or trim their positions.

Technical outlook has weakened as KLCI was unable to break the stiff resistance zones at 100-d (now 1490) and 200-d (1509) SMAs, as well as falling below the immediate support of 10-d SMA (1477). Further breakdowm below mid Bollinger band (1461) means that the current rally is likely to be disrupted, spurring more selldown towards 30-d SMA (1436) points.

Daily KLCI: A Breakdown Below Mid Bollinger Band Will Drive KLCI Lower To 30-Days SMA.
FBM KLCI 11-11-2011

Source: HLIB Research

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