Apr 22, 2013

FBM KLCI Weekly Technical Analysis

Support : 1699  Resistance :   1720
Bias : Cautiously Bullish

below: FBM KLCI Weekly chart (click to enlarge)

fbm klci

The  key index’s  core  technical  indicators are  strengthening, augmenting the positive short-term  outlook. The next target is 1720  and is likely to be tested now that the 1707  levels are  breached.  The recovery could even sustain longer with the 1707-1720  levels a possibility as some form of funds support will likely play out over the next few trading days. The main support, meanwhile, lies at around 1699 level.

Market sideways and cautious …. Sentiment was largely cautious on Friday.  Although the market started on  a cheerful note, touching an intra-day high of 1710.18, it subsequently fell back on lack of fresh and follow through buying. Among the highlights of the day was Johan Holdings,  which  surged 31% to  19  sen after a substantial shareholder linked to Malayan United Industries Bhd disposed of 26.5 million shares.

Up or down?  ….  Despite riding within an up-trending channel, the Composite index has yet to reveal its true course as it is settling into a sideway pattern. It appears that the market is having a case of hesitation until the election concerns are over.

by Mercury Securities