FBMKLCI in 5-day losing streak. Time for rebound?

Stock index closed lower again yesterday but not with a double digits drop as previous Monday dropped. The FBM KLCI retraced about 6.94 points to closed lower at  1,555.64. 

With concern over Euro zone debt crisis that might get out of hand and U.S market debt default worries, every traders are put on high alerts level especially when the market start to dropped from a new high. July will remain a resilient month to trade where both local and foreign sentiment will weight the direction of the market. Currently, stock market is sitting duck as investors are worried about the debt crisis faced by biggest market of all while the other hand we are expecting our market to continue its preceding uptrend based on positive government expenditure on local development and possible general election. These theme will be the headlines for the market to move generally.

Technically, we could expect some technical rebound from the spot month July contract judging from a long lower tail Bullish candles that formed on the late afternoon session yesterday. For today, support is located around 1,540 while resistance is pegged at 1,568.5. 

Daily Pivot Point

R2= 1576

R1=1568.50

S1= 1550.50

S2= 1540

HAPPY TRADING & GOODLUCK2ALL