Expect futures to trade range bound today as Wall Street prepares itself for the publication of company’s 4th quarter earning reports, starting this week. US jobless counts near a low of 3-years however European debt issues still linger.
Back home, FBMKLCI ended the day at par, outperforming the regional counterparts. The index traded lower throughout the morning session before consolidating near its low for the bulk of the afternoon. Late buying interest helped the index recoup the day’s losses as it settled at 1514.13. Leading laggards on the index were banking and plantation stocks. Market sentiment remains buoyant as futures trades at a 9 points premium.
Technicals
Futures settled higher at 1523.5, up 0.49 percent. Indecisiveness in the market resulted in range bound trading with light volume. A white candle was formed indicating bullish activity assisted by some late buying as futures settled just off its high for the day. Indicators remain positive showing futures above its 200-day moving average and MACD back on a bullish divergence path. As such, support and resistance levels pegged
at 1510 and 1540.
Strategy
Aggressive trade may long with stop on below 1510.
HAPPY TRADING
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