Thursday, February 2, 2012

KLCI - More Upside Following The Ascending Triangle Breakout

Bursa Recap: KLCI jumps 15.8 points, tracking regional rallies
Led by HSII (+2%), SHCOMP (+2%) and TWSE (+1.4%), Asian markets were powered by commodity and financial stocks amid improvement in U.S., European and China manufacturing data.

In line with regional bourses, KLCI rose15.8 points to 1537.1 as acceleration in ETP projects rollout lately and encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis.

FBM KLCI Outlook: To retest 1550 zones after the 1530 breakout
Global equities are reacting positively to resilient activity in China, signs of stabilization in Europe, and the ongoing recovery in the U.S. Fresh excitement could also be in store for Asian equities following Fed’s decision on 25 Jan to keep the fed rate at exceptionally low till late 2014, which will encourage more carry trades to invest in overseas financial markets that offer potentially higher returns, particularly in Asia.

With the index staging a strong breakout above 1530 (31 December 11 closing) and upper Bollinger band (1532), a challenge of the 1550 zones is back on the radar. Immediate supports are 1531, 1519 (mid Bollinger band) and 1506 (lower Bollinger band).

Daily KLCI - More Upside Following The Ascending Triangle Breakout
FBM KLCI 03-02-2012



Source: HLIB Research

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