KNM - To plunge further
Daily Technical Outlook
The FBM KLCI closed lower by 6.55 points at 1,333.17. Its resistance areas at 1,333 and 1,347 will cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,315 and 1,331. Due to the Dow’s minor overnight rise of 53.28 points, we expect the FBM KLCI to inch up initially and followed by profit-taking and liquidation later today.
We believe that the FBM KLCI had a key rebound high on 7 April 2010 at 1,347.61. The bearish divergent signals suggest that the FBM KLCI had stalled near the 1,347.61 high. Short-term trading or scalping the market would be the best market strategy. For now, we believe that the market could be very volatile and risky – with little reward and more peril as seen from the market’s reaction to the rating downgrades for Greece, Portugal and Spain – and will eventually be very hazardous. Trade with a very short-term horizon.
FBM KLCI: Key Points
KNM – Poised to plunge further
FBM KLCI – May have stalled at 1,347.61
Obvious support is at 1,315 & 1,331
Firm resistance seen at 1,333 & 1,347
by Maybank IB
