Expect futures to continue its range bound trading as investors seek more convincing economic data to enter the market. US markets were slightly higher overnight, however data showing jobless claims had crept up limited gains on the upside.
On the home front, FBMKLCI settled at 1525.56, up 0.21 percent. The index traded range bound with an upwards bias as investors continued to stay sidelined due to a lack of any concrete leads.
Gaming stock Genting lead the index higher, followed closely by Tenaga and Maybank. Market sentiment turned negative as futures reversed its position against the underlying to a discount of 1 point.
Technicals
Futures settled marginally higher at 1524.5, up 0.03 percent. Trading was uneventful as futures traded within a tight range of circa 7 points. Volume remained light ahead of the auctioning of Italian and Spanish bonds. Indicators turned bearish with the second successive black candle formed, and MACD at the point of a bearish divergence cross-over. As such, support and resistance levels pegged at 1518 and 1532 respectively.
Strategy
Aggressive trade may long with stop on below 1518.
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