Friday, 27th Jan 2012. Stock index manage to closed slightly higher yesterday along with Hang Seng index but most of the indices ended the day lower. Other news to follow.
"-U.S. stocks squandered early gains to end lower on Thursday, losing
steam after the Commerce Department said new-home sales fell in
December, in contrast to market expectations. The Dow Jones Industrial
Average
DJIA
-0.18%
declined 22.33 points, or 0.2%, to 12,734.63. The S&P 500
SPX
-0.58%
lost 7.63 points, or 0.6%, to 1,318.43. The Nasdaq Composite
COMP
-0.46%
retreated 13.03 points, or 0.5%, to 2,805.28. "
FKLI- Trapped Within The Range
The FBM KLCI edge up about 4.10 points to 1,523.86 yesterday which happen to close exactly at the high as well. Apparently, the leading index to gauge our economy activity indicate our economy is slowing down for few months ahead. This add up negative background on our equity market as we have impending Euro zone debt crisis plus economy slow down in most Asia emerging market. Technically, the index futures is spending most of its time traveling within the band shown on the hourly chart above. Currently, market is likely to stay at sideways judging on flat sloping EMA tunnel and MACD oscillator. It is likely to stay resilient around 1,525 level towards the end of this month unless there is any major overnight movement from U.S market. In another words, equity index is likely to track external headwinds not limited to positive momentum but on negative directions as well.. Market is still susceptible for minor correction if it could not break above previous Wednesday level at 1,536. For today, immediate support is located around 1,521.50 while resistance is pegged at 1,531.50.
Daily Pivot Point
R2= 1531.50
R1= 1528
S1= 1521.50
S2= 1518.50
FCPO- Swift Correction Due To Lower Demand Concern
CPO futures ended lower about xxx to xxx yesterday as most market participants were spook by continues dropped in export figures announced. Both cargo surveyors (ITS and SGS) reported Malaysia palm oil 1-25th Jan 2011 vs Dec 2011 export dipped about 18% on average. It seems that more negative shock is coming if the palm oil export deteriorate further because price is going to be lower due to record high stocks level so far. Yesterday correction is deem overdone where traders with Long positions decided to just unload their exposure as soon as possible, probably right after they know about the weak export figures announced in the morning session Technically, palm oil futures is heading down based on the 34 EMA tunnel negative slope shown on hourly chart at the moment. It is unpleasant sight to watch the market fell yesterday as it could create a reversal sign for the market to correct further. Reason behind for this correction would be lower high formation that can be see on daily chart and other smaller time frame chart as well. Although it might not look that Bearish in medium term as the long support trend line is still intact (white diagonal line), yesterday session was fully controlled by Bears. Higher volume was also reported along with this correction. For today, support is located around 3,103~3,100 while resistance is pegged at 3,179.
Daily Pivot Point
R2= 3179
R1= 3155
S1= 3117
S2= 3103
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.
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