Tuesday, July 5, 2011

CIMB Research sees stronger rally ahead

KUALA LUMPUR: CIMB Research said the FBM KLCI charged towards a new all time high of 1,589.93 on Monday, July 4 before selling pressure set in.

In its market outlook on Tuesday, it said the market is taking a breather but this does not alter its view of a stronger rally ahead.

'While trading could be choppy, we expect prices to swing closer towards the 1,605 resistance. The 1,600-psychological level could also act as a magnet for prices,' it said. CIMB Research said the candles are likely to reach new highs before a deeper correction would take place. Key support is at 1,560 and 1,525.

'We continue to believe that any pullback should be seen as an opportunity to accumulate as long as the 1,560 levels hold,' it said.

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