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Friday, July 5, 2013

FBM KLCI Futures >>> Daily Preview, Technical Analysis

Expect futures to trade range bound with an upward bias in tandem with rising Asian and European markets after European policy makers communicated that they will maintain interest rates at a record low for an extended period of time to stimulate further growth. US market was closed last night in conjunction with the Independence Day holiday. Jobless claims figures due to release later tonight will be closely watched for indication of economic strength.

In the local front, FBM KLCI gained 0.12 points to settle at 1771.34. The local index managed to post some gains in tandem with advances in most global markets, albeit lackluster trades.

Leading leaders were stocks from the plantation and banking industries, namely Kuala Lumpur Kepong, IOI Corp, CIMB, Maybank, Public Bank, and Hong Leong Bank. Futures now trade at a further premium of approximately 4 points away its underlying cash index.

Futures prices hiked 0.31 percent to close at 1775.50. Trading activities formed a white spinning top, a depiction of indecisiveness amongst investors. Regardless, prices still managed to close firmly above its 20, 50, and 100 day moving averages, which imply that strength was still in tact. Hence, expect prices to further its bullish movement today as MACD indicator pointed towards a buy strategy as well.

Support and resistance can be eyed at 1765 and 1785 respectively.

Traders may long with a stop on or below 1765.

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