Wednesday, June 23, 2010

FBM KLCI support at 1,315

KUALA LUMPUR: CIMB Retail Research said the FBM KLCI saw some profit taking on Tuesday, June 22 following 10 days of gains.

In a research note issued on Wednesday, it said the 30-stock index formed a potential bar reversal pattern called an inside day. If the index closes near the low on Wednesday, then the index may have ended its rebound from the May 27'' low, it said.

'At this point, it is still too early to commit to the bearish idea but we remain very cautious since the rebound has been on light volume.

'Closing below its corrective channel support at 1,318 and its 50-day SMA at 1,315, would confirm that the next wave of selling is underway. Support is at 1,315 and 1,300 while resistance is at 1,337 and 1,350,' it said.

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