Friday, October 8, 2010

HLG Research cautiously optimistic on market

KUALA LUMPUR: HLG Research said despite a dip on the Dow Jones Industrial Average overnight on profit taking activities, the positive Alcoa results and a drop in weekly claims in the US should provide cautious optimism to the local bourse and enable it to absorb any profit taking.

In its market outlook on Friday, Oct 8 it said barring a sluggish US job data tonight, the FBM KLCI is still capable of extending its bullish momentum amid a fresh 'buy' signal on the stochastic oscillators.

'However, the indecisive trading over the last two trading days suggests that the FBM KLCI is likely to remain in a tight range.'' Immediate resistance is 1,490 (Jan 9, 2008's intraday high).

'Stronger resistance zones are the 1,500 psychological mark and all-time high of 1,524. Key supports are situated at 1,466 (10-d SMA), 1,450 (30-d SMA) and 1,430 (40-d SMA),' it said.

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