Showing posts from March, 2016

FBM KLCI - Strong Ringgit to Boost Sentiment

Blue chips led by banks again extended gains Wednesday, after the ringgit appreciated to a near eight-month high of 3.91 to the USD, the strongest since early Aug last year, copying regional strength after the US Fed chief suggested interest rates may not be raised soon. The KLCI added 2.78 points to end at 1,717.82, off an early high of 1,724.13 and low of 1,716.37, as gainers edged losers 433 to 351 on improved total turnover of 1.85bn shares worth RM2.34bn.

Resistance at 1,728, Support at 1,692
Given the recent strong ringgit trend, companies with high foreign borrowings may recover further from their severe selloffs while major exporters experience profit-taking corrections. Significant resistance for the index stays at 1,728, the 61.8%FR of the 1,867 to 1,503 selloff matching the October 2015 peak, with subsequent stronger hurdles from the August 2015 high of 1,744 and the 76.4%FR level at 1,781. Immediate support stays at the rising 30-day moving average (1,692) and then the 2…