FBM KLCI : Trading Opportunities Emerged - Maybank IB

Daily Technical Outlook
The FBM KLCI shed 6.95 points to close at 1,276.02 yesterday. Its resistance areas at 1,276 and 1,296 may cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,243 and 1,270. Due to the USA’s firm market action last night, we will see the FBM KLCI “gap-up” today, to be followed by likely profit-taking activities. 

The FBM KLCI had peaked at 1,349.92 (near the 75% retracement level measured from its 1,524.69 high to its low of 801.27). Trading opportunities have emerged with the Bullish Engulfing candlestick low at 1,243.86 last Thursday. Trade with a short-term time frame, with stop-loss below 1,241. The current rebound phase could stall at the 38%, 50% and 62% retracement levels of 1,284.37, 1,296.89 and 1,309.41. Remain bearish if the FBM KLCI cannot surpass its critical resistance level of 1,315.63. 

The European sovereign debt problems and EURO currency crisis have not gone away. Keep a very cautious eye on Europe, and clients should protect their positions with a relevant stop-loss.

FBM KLCI: Key Points
  KOSSAN – Take profit on this stock
  FBM KLCI – Temporary low at 1,243.86
  Obvious supports are at 1,243 & 1,270
  Firm resistances seen at 1,276 & 1,296


by Maybank IB

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