Expect futures to trade range bound today with an upward bias. US stocks continued their new year rally with banking stocks leading the charge. A slew of encouraging economic data lately has given investors the perception the world’s largest economy is stabilizing despite dismal performances over in Europe from their
ongoing debt issues.
Back home, FBMKLCI gained 0.68 percent to finish the day at 1514.43. The index experienced a surge forward in early trade before a slight pull back to end the morning session flat. The afternoon session saw the bulls resurface, foreign funds being the main instigators as they bought into select blue chip stocks. A variety of sectors from plantation to telecommunication stocks led the index higher. Sentiment remained positive as futures trades at 1.5 points premium to the underlying cash.
Technicals
Futures settled at 1516, up 0.73 percent. Futures gains can mostly be attributed to the early morning trade where it touched its high of 1521 before retracting into consolidation mode for the remainder of the day, hovering around its closing price. A white bodied candle was formed evident of the bullish action seen. Indicators remained upbeat as futures holds above its 200-day moving average and MACD back on a divergence against its 9-day moving average. As such, support and resistance levels pegged at 1510 and 1532 respectively.
Overnight Leads
Banks led Wall Street to gains on Thursday even as Europe struggled again, a sign investors are betting a relatively strong U.S. economy will help U.S. stocks outperform other markets.
Strategy
Aggressive trade may long with stop on below 1510.
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