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Thursday, August 26, 2010

HLeBroking Research on 27 August 2010

Despite the decoupling effects lately, persistent bearish economic data emerging from the US, deteriorating technical indicators and the lack of catalysts after the reporting season would dampen investors’ risks appetite.

With the Dow closing below 10k overnight and ahead of the crucial 2Q10 GDP revision and Aug consumer sentiment announcements tonight, the FBM KLCI will likely encounter stiff resistance to buck the Wall St and regional downtrends.  This is despite anticipation of short term funds inflow due to the strengthening RM against the greenback and the safe haven status of Bursa Malaysia.

For FBM KLCI, immediate resistance levels are 1412 (50% FR from top 1524 and low of 1300) and 1438 (61.8% FR). Immediate support levels are at 1400, 1390 (10-d SMA) and 1375 (20-d SMA).

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