Monday, February 20, 2012

Market Overview 21st Feb 2012

 Tuesday, 21st Feb. FBM KLCI continue to record gains amid better progress on European debt crisis yesterday. Other news to follow.

"-Asian stocks rose Monday as China relaxed its policy to ease tight money conditions, with investor sentiment also buoyed by hopes European leaders will sign off on a second bailout package for Greece. Japanese shares ended higher than their six-month highs, while Hong Kong’s benchmark stock index finished lower after also hitting a level it hasn’t seen since early August. The Nikkei Stock Average JP:NIK +1.08%  jumped 1.1% to 9,485.09 in Tokyo and Hong Kong’s Hang Seng Index HK:HSI -0.31%  dropped 0.3% to 21,424.79. Elsewhere, China’s Shanghai Composite Index CN:000001 +0.27% advanced 0.3% to 2,363.60, Australia’s S&P/ASX 200 index AU:XJO +1.44%  jumped 1.4% to 4,256.10, South Korea’s Kospi KR:0100 +0.07%  inched up 0.1% to 2,024.90 and Taiwan’s Taiex XX:Y9999 +0.77%  added 0.8% to 7,954.82."

"- Oil prices jumped to a nine-month high above $105 a barrel as Iran on Monday reportedly threatened to extend an embargo on Britain and France to other European nations. Benchmark futures for March delivery CLH2 +2.27%  rose as high as $105.44 a barrel in electronic trade on the New York Mercantile. The contract added 93 cents to finish at $103.24 a barrel in New York on Friday. U.S. markets were closed Monday for the Presidents Day holiday."

 FKLI- Hovering on Positive Direction. 

 Stock index continue to edges up as Eurozone finance ministers will approve a second bailout for troubled Greece yesterday. Most regional market were higher in the morning session but only mange to end with marginal gain on the closing that is likely due to overbought condition. Back to our local market, stock index is moving in a right path to stay in the positive momentum. On close, the Feb contract rose marginally about 1.50 points to 1,562, off 5.50 points from the high. Generally, the U.S equity indexes are approaching multi-years high, i.e: the Dow Jones Industrial Averages is just meters away from 13,000 mark, while S&P is having a remarkable recovery so far 1,361.23.  Technically, yesterday higher closing marks the continuity for the market to recover but we are expecting some mild retracement along the way. Derivative traders are advised to watch out for sign of trend pausing indication and the suitable time frame to look for will be on hourly chart follow by daily chart. For today, support is located around 1,556 level while resistance is located around 1,573 level.

Daily Pivot Point
R2= 1573
R1= 1567
S1= 1556
S2= 1550

FCPO- Breaking Out Above Multi Month High. 

 CPO futures breached above at least 3 months high yesterday when the benchmark May open gap up about RM30 amid Soya oil swift recovery on previous Friday. Export figures continue to dampen gain throughout the afternoon trading session as both cargo surveyors estimated palm oil export for 1-20th Feb only stood around 780 thousands tons. Currently, fundamental weakness might not be a significant element when it comes to Short-term to medium term trading as traders is not looking at substantial gain on their portfolio. When it comes to risk and reward, some highly leverage traders would only need 3~5 points for most of their trades with close monitoring while 40~80 points for medium term trader and it can be achieve on intraday basis or holding the positions latest at the end of the week. Technically, the benchmark May have made a significant break thru yesterday after it breach the monthly resistance level at 3,270. Even though it could not sustain the gains made on morning session, price action still showing more potential for the price to move upwards. Moreover, the market have been create series of higher lows and higher high so far, plus breaching above at least 2 important resistance levels. For today, support is located around 3,232 while resistance is pegged at 3,289.

Daily Pivot Point
R2=3289
R1=3267
S1=3232
S2=3219
 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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