FBM KLCI Daily Chart Tecnical Outlook Jun 11
Daily Technical Outlook by MIBFBM KLCI: Key Points
FBM KLCI – Resilient despite global malaise
Obvious supports of 1,539 & 1,558
1,560 & 1,576 resistance levels will cap rebound
The FBM KLCI closed higher by 1.62 points to close at 1,558.04 yesterday. Its resistance areas of 1,560 and 1,576 will cap market gains, whilst the support areas are located at 1,539 and 1,558. The FBM KLCI stalled at its new all-time and major high of 1,576.95 on 6 Jan 2011. The next key swing levels were 1,474.38 (low), 1,565.04 (high) and 1,507.64 (low). Due to the world markets’ poor tone last night; we will see some volatility in the local bourse today. We expect the FBM KLCI to remain volatile today, as it may be adversely affected by the US and regional markets. Investors should trade the local market with a short-to-medium term time frame.
Despite the recent global volatility, the local FBM KLCI index has gone up in a small way. The question investors will ask is that how long can the index do this in the face of global adversity.
by Maybank Investment Bank