Tuesday, January 10, 2012

KLCI Holding Well Above The 10-days And 200-days SMAs

Bursa Recap: KLCI bucks weak regional bourse to end +7.6 points
Asian stocks traded mixed on Monday as renewed worries about the fallout from the European sovereign debt crisis overshadowed signs of vigor in the U.S. economy. Worries over Europe intensified with a debt rating downgrade to junk status for Hungary as well as this week's key debt sales by Italy and Spain.

Investors are also awaiting the outcome of the meeting between German Chancellor and French President late evening to craft a plan for rescuing the euro over the next three months. Bucking the regional trend, FBM KLCI jumped 7.6 points at 1521.7, thanks to last minute bargain hunting on selected index-linked stocks such as CIMB (+11 sen to RM7.29), TENAGA (+13 sen to RM6.09), PETGAS (+30 sen to RM15.10), MAXIS (+9 sen to RM5.62) and AXIATA (+3 sen to RM4.98).

Investors were also relieved that Anwar Ibrahim’s acquittal over a sodomy charge yesterday an exoneration for the political conspiracy claims hurled at the BN government.

FBM KLCI Outlook: Uptrend still intact
In the wake of a strong breakout above the 200-d SMA (now at 1501) and 10-d SMA (1510), the KLCI is poised to trend higher in its bid to re-challenge the all-time historical high of 1,597 over the intermediate-term perspectives.

Despite anticipating short term volatility particularly from external headlines, expectations of acceleration of ETP projects, generally positive Chinese New Year (CNY) performance and potential pre-election rally will further augment upward trajectory.

Supports are 10-d SMA (1510), 1501, mid Bollinger band and uptrend line (1490). The rally from its September 11 is at stake if the 1490 support is violated.

Upside targets are the huge gap within 1529-1546 dated 5 August 11.

Daily KLCI: Consolidating Upward Along The Uptrend Channel
FBM KLCI 10-01-2012

Source: HLIB Research

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