The FBM KLCI gapped down at the opening bell in a knee-jerk reaction to the US market’s performance last Friday. However, bargain hunting emerged not too long after that, pushing the key index all the way up to close lower by only 8.12 pts.
The way that the index rebounded off the intra-day yesterday may look encouraging to some people, but our view remains that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
The way that the index rebounded off the intra-day yesterday may look encouraging to some people, but our view remains that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
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