Wednesday, July 13, 2011

CIMB Research: KLCI facing greater selling pressure near 1,600

KUALA LUMPUR: CIMB Equities Research said the correction on Tuesday, July 12 showed the FBM KLCI is facing greater selling pressure near the 1,600-psychological level.

'Although this consolidation could last a while longer, we believe that any pullback should be seen as an opportunity to accumulate as prices are still holding above its 30-day SMA and the 1,560 levels,' it said on Wednesday.

CIMB Research said this setback allows the indicators to neutralise the overbought condition before the next upleg kicks in.

'Key resistance levels are around the 1,609 and 1,622 levels while supports remain at 1,560 and 1,525,' it said.

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