Thursday, November 24, 2011

Market Overview 25th Nov 2011

 Friday, 25th Nov. The FBM KLCI surge about two digits yesterday after previous session retracement. Other news to follow.

"-U.S market is closed for thanks giving holiday tonight."

"-Many major Asian equity markets swung between small gains and losses Thursday, although Japanese shares took a sizeable drop as investors returning from a holiday caught up on global developments. Japan’s Nikkei Stock Average JP:NIK -1.80%  ended 1.8% lower after missing steep losses on other Asian markets Wednesday. Moves were more muted across the rest of Asia, with Hong Kong’s Hang Seng Index HK:HSI +0.40%  up 0.4%, South Korea’s Kospi KR:0100 +0.67% up 0.7%, Australia’s S&P/ASX 200 index AU:XJO -0.17% slipping 0.2%, and the Shanghai Composite Index CN:000001 +0.10%  edging up 0.1%, Asian shares have been under broad selling pressure this week, as investors reacted to heightened concerns about Europe’s debt crisis and its potential impact on global economic growth."

 FKLI- Recover Swiftly After previous Retracement

 Alright, what do you know, index futures choose to rallied swiftly right after it fell close to 1,400 level. Buyers revived yesterday proof from their swift accumulation activities that took the Nov contract up about 30 points or 2.11% to 1,448.50, the highest it wen t was 1,450 level. The FBM KLCI rose 14.82 points or 1.03% to 1,447.99 yesterday. Buyers are dominating throughout the session when the basis (discount) value narrowed closely on the afternoon session, and the Nov contract manage to close on premium ( Nov contract 1,448.50 vs 1,447.99 FBM KLCI). Market is likely to have more reason to strengthen if the index futures are trading above the cash composite. For today, market is likely to continue its positive momentum judging on yesterday rallied couple with higher volume and open interest. The Bullish candle also engulf few  previous Bearish candle which might signifies short term Bullish reversal signal.  

Daily Pivot Point
R2= 1473
R1= 1461
S1= 1424
S2=1400

 FCPO- Second Support Trend Line Tested, Slight Rebound. 

 CPO futures remain to hover lower yesterday as market sentiment still haunted bad price outlook from Soya oil yesterday. At close, the benchmark Feb slide about RM53 to 3,108 level. Unfortunately, market is yet prepare for any sign of recovery so far amid Sellers pressure are noticeable yesterday judging from higher volume and open interest recorded when the market closed lower. The benchmark Feb have retrace about 170 points so far from the peak at 3,274 on previous Monday and a typical correction could span within 120~280 points points retracement before it can be identified as any trend reversal. In other words, it is a long guess how deep this correction could take us if it could breach the major support level around 3,080 level (judging from previous resistance turned support level) shown on hourly chart above. On other side, rainy weather is likely to provide positive sentiment on palm oil price outlook for medium term perspective but it is too subjective to tell whether this positive sentiment will help to support prices to fall steeply. For today, support is located around 3,080 while immediate resistance is pegged at 3,130 followed by 3,152.

Daily Pivot Point
R2= 3152
R1= 3130
S1= 3089
S2=3070
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.

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