Tuesday, December 20, 2011

KLCI: Upside Bias Following The Strong Breakout

Bursa Recap: KLCI up 11.6 points, bucking regional slump
Regional bourses fell amid concerns over more downgrade warnings on Europe sovereign bonds and fears of regional instability after the death of North Korea leader Kim Jong il,

Bucking the downtrend, FBM KLCI jumped 11.6 points to 1477.8, spurred by window dressing activities on selected index-linked counters such as AXIATA (+14 sen to RM5.00), DIGI (+8 sen to RM3.70), GENTING (+16 sen to RM10.54), YTL (+8 sen to RM1.54) and CIMB (+5 sen to RM7.05).

FBM KLCI Outlook: Holding well above 1450
Technical readings have turned better following yesterday 11.6 points gain to stage a strong breakout above the downtrend line. However, given the persistent negative headlines from Europe and thin volume ahead of the year-end holidays, we expect the local bourse to remain volatile albeit with an upward bias due to the window dressing activities.

Immediate crucial support is the 50-d SMA or uptrend line (1458), followed by last week’s low at 1448. A breakdown of 1448 would mean that the rally from 1311 low (Sep 26) is likely exhausted and will head toward lower Bollinger band (1428). Resistance levels are 38.2% FR (1487) and 200-d SMA (1502).

Daily KLCI: Upside Bias Following The Strong Breakout
FBM KLCI 20-12-2011

Source: HLIB Research

1 comment:

  1. Looks like DJI and SP500 got difficulties to break the resistance zone. they need more momentum...


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