Expect futures to trade under pressure today as overnight Dow Jones and S&P recorded losses after the Greece bailout agreement suffered a setback, facing opposition by Greek lawmakers.
In addition, investors were expecting a slowdown after recent strong equity rally. On the local front, the FBM KLCI ended at 1561.66, down 0.23 percent. Bargain buy was apparent after index opened lower, pushing index to day’s high of 1564.66. However, profit takers controlled the trending for the rest of the day. Energy, plantation and gaming stocks were the leading losers for the day, shown by TNB, IOI and Genting stocks. Market sentiment remained negative, as futures now trade at a discount of 8.66 points.
Technicals
Futures ended the day at 1553.0, down 0.35 percent. Futures trading was depicted in the formation of a short black candle, a reversal of fortune after a five-session streak of bullish outlook. As prices maintain its position above the psychological level of 1550, MACD is likely to continue its bullish momentum, crossing over its 9-day moving average. Technically speaking, investors may stay indecisive as contrasting outlook were derived from the indicators. As such, support and resistance can be pegged at 1533 and 1568 respectively.
Strategy
Aggressive trade may short with a stop on below 1568.
GOODLUCK
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