US stock market resumed its uptrend by ending the day with another winning streak, giving more positive support to test the 8000 level in the near term. Overnight DJIA managed to surge 152 points, near the day high as the economics data released were better than expected. Existing homes sales unexpectedly increased and a manufacturing gauge topped economists’ estimate, signaling the economy may be stabilizing.Technically, secured above the MA 50 will boost the follow through upward movement and move on to re-test the stance overhead 8000 level. At this moment, we still remain positive in Dow but cautious on Unemployment data that will be released tomorrow night (economic data which normally created volatility in the market).
[Reminder: US will release its Initial Jobless Claim (Survey 650K Vs 652K Prior) data later tonight]
FKLI
Better stock earning heavyweight counters pushes the composite index upward, heading the psychological resistance at 890.
The cash composite manage to inch up about 11 points to end higher at 884 despite quite trading session. Total 371M shares valued at RM493M changed hand. April contract gain about 4.50 points to 880. Total volume decreased from 11,327 to 8,035 while open interest shrink from 25,432 to 18,526, a typical sight for new spot month contract.
Asian stocks rose for the 1st time in 3 days on speculation Japanese and South Korean automakers will benefit from the possible bankruptcies of GM Corp and Chrysler LLC. As a result, the Nikkei surged about 242 points to 8,351. Meanwhile, HSI dropped about 56 points to 13,519 led by China’s 2nd biggest mobile-phone company, China Unicom ltd.The market might head for upward consolidating as better heavyweight stock performance that will help to support the cash composite.
Gazing at the chart outline, the April contract is well support above ascending triangle pattern which we believe it would be a technical support or immediate indication of trend reversal. Market upward expectation will be capped at 894 while downside is limited at 867 (SMA 50). In accordance with our view in DJIA, we will also remain our upbeat on FKLI (based both in fundamental and technical).
Gazing at the chart outline, the April contract is well support above ascending triangle pattern which we believe it would be a technical support or immediate indication of trend reversal. Market upward expectation will be capped at 894 while downside is limited at 867 (SMA 50). In accordance with our view in DJIA, we will also remain our upbeat on FKLI (based both in fundamental and technical).
No comments:
Post a Comment