Showing posts from December, 2013

KLCI Technical Reading Summary

Technical  indicators  for  the  FBM  KLCI  have  turned  bullish  following  the  strong  windowdressing  surge  on  blue  chips  last  week,  with  a  fresh  daily  stochastics  buy  signal  and  daily MACD  poised  to  trigger  a  buy  supporting  further  upside  momentum.  However,  investors should be aware that window-dressing buying may peak on 31 December, hence profit-taking correction could follow in the first few trading days for 2014. As such, investors should look ahead to take profits on blue chips which will be overbought on further gains. above: FBM KLCI Weekly chart  (click to enlarge)

As  for  the  index,  immediate  support  is  upgraded  to  the  rising  10-day  moving  average currently at 1,843, followed next by the 30-day moving average at 1,823, close to 1,822, the October  high  resistance-turn-support  level,  with  stronger  support  cushion  from  the  50-day
moving average now at 1,816 (see the Chart above ). The 100-day moving average at 1,790 acts as…

KLCI Rebound On Overnight US Rally

Mild profit taking capped gains on local stocks Wednesday, with losses spotted on selective blue chips and key index heavyweights, while most regional markets were subdued ahead of the US Federal Reserve’s decision on stimulus tapering. The FBM KLCI inched down by 3.4 points to 1,847.50, off a low of 1,841.43 and high  of 1,849.43, as losers beat gainers 433 to 326 on trade totaling 1.08bn shares worth RM1.63bn.

Immediate Resistance at 1,860
The local market should rebound on spillover from the strong overnight rally on Wall Street after  the  US  Federal  Reserve’s  decision  to  start  unwinding  stimulus  and  dovish  forward guidance. While the unexpected tapering could causesome knee jerk selling reaction in the local  market  on  fears  of  reversal  of  foreign  funds, we  expect  it  to  be  short  lived  as  the measured  pace  of  reduction  of  US$10bn  per  month,  the  Fed’s  commitment  to  maintain interest rates at current level until 2015 and the  strength in the U…