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Friday, March 16, 2012

FKLI >>> Previews / Technicals 16 Mar 2012

Expect futures to trade range bound with an upwards bias after US stocks advanced last night and the S&P climbed to its highest level since the 2008 mortgage crisis. Investors’confidence is buoyant as the US continues to churn out betterthan-expected economic data, lending thought that the global economy is making ground into its recovery.

Back home, FBMKLCI settled at 1579.38, up 0.23 percent. Trading was uneventful as the index set in to consolidation mode due to a lack of fresh leads. The index was sold down during the AM session, however recovered in the PM session with late buying interest at market on close helping to push the index into positive territory. Banking counters CIMB and Maybank were the leading movers. Market sentiment improved with futures trading at a 2.5 points premium to the underlying cash.
Futures settled at 1582, up 0.35 percent. Futures started the day off on a positive note, opening with a gap-up, then proceeded to trade within a tight range of circa 4 points for the majority of the day. A look-a-like spinning top candle was formed indicating indecisiveness in the market as investors tread cautiously further highlighted by the light volume. Futures now trades well above its 20-day moving average. As such, support and resistance levels pegged at 1576 and 1590 respectively.

Overnight Leads
The S&P 500 closed above 1,400 for the first time since the 2008 financial crisis on Thursday as stocks resumed the upward climb that has produced a steady stream of gains this year.

Intraday Strategy
Aggressive trade may long with a stop on or below 1576.0

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