FBM KLCI Today Technical Outlook

Daily Technical Outlook
The FBM KLCI closed lower by 6.10 points to 1,326.67. Its resistance areas at 1,326 and 1,347 will cap market gains, whilst the weaker support areas for the FBM KLCI are located at 1,300 and 1,315. Despite the Dow’s overnight rise of 73.39 points, we expect the FBM KLCI to remain under profit-taking activities. Initial buying (and possible gap-up) activities may fizzle out in the latter part of the day.

We believe that the FBM KLCI had a key rebound high on 7 April 2010 at 1,347.61. The MACD and  Stochastic sell indicators together with the bearish divergent signals suggest that the FBM KLCI is risky at this juncture – with little reward and more risk if investors bargain hunt at these lofty levels. Sell on rebounds and step aside is what we advocate. Otherwise, short-term trading or scalping the market would be the best market strategy.

FBM KLCI: Key Points
  Liquidate at 1,326 and 1,347
  FBMKLCI had peaked at 1,347.61 (on 7 April) 
  Sell on any and every rebound
  Weaker support seen at 1,300 and 1,315

source: Maybank Investment Bank