KLCI Daily Technical Outlook - MIB
The FBM KLCI closed higher by 0.51 of a point at 1,346.89. Its resistance areas at 1,348 and 1,360 will cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,328 and 1,346. Due to the Dow’s major overnight rise of 143.22 points, we expect the FBM KLCI to inch up initially to be followed by profit taking and liquidation later today.
We believe that the FBM KLCI is supported by local funds and is resilient amidst adversity. The bearish divergent signals suggest that the FBM KLCI may be stalling as it rises. Short-term trading or scalping the market would be the best market strategy. For now, we believe that the market could be very volatile. Therefore, trade with a very short-term horizon.
Some stocks that we like are: AMFIRST, ATRIUM, CSCENIC, GKENT, HUPSENG, JOHAN, LPI, MAGNI, P&O, PROTON, TEJARI, VITROX, YEELEE and ZHULIAN.
FBM KLCI: Key Points
ZHULIAN – Poised to rise further
FBM KLCI – Resilient in adversity
Obvious support is at 1,328 & 1,346
Next resistances seen at 1,348 & 1,360
by Maybank Investment Bank