Support : 1699 Resistance : 1720
Bias : Cautiously Bullish
below: FBM KLCI Weekly chart (click to enlarge)
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