FKLI Outlook 15 July 2011 >>> Sideway Movement Expectations

With the FBM KLCI hovering within a tight range trading session where market just paused most of the time from moving. Some investors are taking this as a healthy correction before the stock index could surge higher.

Judging from local stock market sentiment with promising M&A activities, stock index is to remain positive unless there is strong Bearish reaction (might due to external factor) that swiftly breach below the support trend line.

Technically, index futures is expected to hover within a sideways market even though there is a break out or break down from the small triangle pattern shown above. The expected upper limit is capped at 1,584 while lower limit is located around 1,571. 

Daily Pivot Point

R2= 1586

R1= 1582

S1= 1575

S2= 1572

HAPPY TRADING