Wednesday, 21st Dec. The FBM KLCI took a nose dive yesterday after it rose substantially two days ago, paving a way for healthy correction. Other news to follow.
"-U.S. stocks surged 3% Tuesday for the indexes’ best day so far this
month, as sentiment about the global economy got a boost from a jump in
the nation’s housing starts, improving German business data and a better
Spanish bond auction.
The Dow Jones Industrial Average
DJIA
+2.87%
rallied 337.17 points, or 2.9%, to 12,103.43, with all 30 blue-chip
components higher. It was the index’s best day since Nov. 30 and more
than covered the prior session’s losses.
The S&P 500
SPX
+2.98%
jumped 35.95 points, or 3%, to 1,241.30, also its best day this month. The Nasdaq Composite
COMP
+3.19%
advanced 80.59 points, or 3.2%, to 2,603.73."
"-South Korean and Japanese shares advanced Tuesday to take back some of
the losses suffered the previous day, as fears aroused in the wake of
North Korean leader Kim Jong-il’s death subsided.
South Korea’s Kospi
KR:0100
+0.91%
rose 0.9% to 1,793.06, after sinking 3.4% in the previous session. Japan’s Nikkei Stock Average
JP:NIK
+0.49%
gained 0.5% to 8,336.48 and Taiwan’s Taiex added 0.4% to 6,662.64.
China’s Shanghai Composite
CN:000001
-0.10%
dropped 0.1% to 2,215.93 and Hong Kong’s Hang Seng Index
HK:HSI
+0.06%
rose 0.1% to 18,080.20, after each of them changed direction a few times."
Stock index retreated yesterday close to the day low after investors prefer to shed their positions amid growing concern over European debt crisis and lack of sign of U.S Christmas rally so far. The FBM KLCI retrace about 12.61 points to 1,465.17, giving back most of the gains made on previous Monday this week. If there going to be any seasonal rallies on Christmas, it should not delay over this end of week because after that we might not expecting any Christmas rallies after coming back on Tuesday next week. Technically, index futures is poised to recover further judging from the higher lows and higher high candles pattern formed so far. Traders could use previous low to act as immediate support if anything would goes wrong from here. Market is likely hovering back into sideways condition as volume and open interests have stayed thinned for the past two weeks. For today, support is located around 1,460~59 level while resistance is pegged at 1,477 level.
Daily Pivot Point
R2= 1485
R1= 1477
S1= 1464
S2= 1459
FCPO- Temporary Recovery
CPO futures closed unchanged yesterday after hovering lower most of the session as sentiment remain Bearish towards the end of year 2011. Demand is definitely not looking as both of the independent cargo surveyors announced that palm oil export for 1-20th Dec vs Nov export fell 10%~11% to 924~933 thousands tons. Bear in mind that inventories stood slightly over two millions tons for the Nov month and palm oil prices are likely having difficulties to recover if the demand figures does not pick up. Elsewhere, Soya oil prices are likely hovering on sideways at the moment (with support around 48.40 cents followed by 550 cents per pound) as most traders are unwinding their Long /Short holding before the Christmas holiday this end of week. Technically, the benchmark Mar downside risk remain intact as the price action did not form any higher low or other promising indication for it to recover steadily. Tight range trading session is expected today judging on low volume transacted since previous two weeks. Conclusively, palm oil futures is likely tracking other it's rival product, Soya oil futures performance, at the moment. For this week, major support is located around 2,970 level while major resistance is pegged around 3,050 level.
Daily Pivot Point
R2=3035
R1=3027
S1=3004
S2=2989
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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