Thursday, December 15, 2011

FBM KLCI HasMore Downward Correction If 1450 Support Falters

Bursa Recap: KLCI inches down 2.3 points at 1463.1
Regional markets continued its downtrend as the Eurozone debt crisis, fear of more credit downgrades and no fresh pledges from Fed on further stimulus kept investors on the sidelines.

Mirroring regional markets’ pessimism, KLCI was 2.3 pts lower at 1463.1, driven by losses in GENTING (-22 sen to RM10.42), KLK (-50 sen to RM22.60), AMMB (-10 sen to RM5.76), GENM (-5 sen to RM3.85) and IOICORP (-3 sen to RM5.09).

FBM KLCI Outlook: More downward correction if 1450 support falters
Ongoing doubt over the euro-zone debt crisis and prospect of mass euro zone sovereign rating downgrades should continue to dampen investors’ sentiment and encourage wild swings in the financial markets.

Immediate crucial support is the 50-d SMA or uptrend line (1450). A breakdown below 1450 would mean that the rally from 1311 low (September 26) is likely exhausted and will head toward lower Bollinger band (1426) and 61.8% FR (1420) supports.

Resistance levels are 10-d SMA (1476), 38.2% FR (1487) and 200-d SMA (1502).

Daily KLCI: Uptrend Line Support Looks Shaky

Source: HLIB Research

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...