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Tuesday, June 25, 2013

FBM KLCI in danger of closing bullish GE 13 gap

Bursa Malaysia shares slumped in line with regional losses led by China which tumbled 6.3% amid concerns a credit crunch and scaling back of stimulus by the US Federal Reserve will hurt economic growth. The KLCI fell 17.66 points to settle near session lows at 1,738.19, off an early high of 1,756.02, as losers trashed gainers 797 to 121 on active trade totaling 1.67bn shares worth RM2.18bn.

Concerns over faltering economic growth in China due to a credit crunch and foreign fund flows back to the US should continue to adversely impact near-term sentiment. Hence, there could be further downward correction for the index to close the post 13GE gap-up with next support coming in at 1,718, the high prior to 13GE.
More significant retracement supports of the 1,597 low (7/2/13) to 1,826 high (6/5/13) are at 1,711 (50%FR) and 1,685 (61.8%FR) matching the 3 May low.
Immediate resistance stays at 1,772 (23.6%FR), with next resistance at 1,792, followed by the 1,800 psychological level.

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