Sunday, April 29, 2012

Market Overview 30th April 2012

Monday, 30th April 2012. The FBM KLCI went on selling spree after congesting around 1,578~1,572 level for a few session last week while regional index ended mostly lower last Friday. Other news to follow.

"- U.S. stocks gained Friday, with the S&P 500 closing above 1,400 for the first time since April 3 and the Nasdaq Composite rallying 2.3% for the week, with gains stoked by strong quarterly earnings. Up 1.5% from last Friday’s close, the Dow Jones Industrial Average DJIA +0.18% rose 23.69 points, or 0.2%, to 13,228.31. The S&P 500 Index SPX +0.24%  added 3.38 points, or 0.2%, to 1,403.36, with the index up 1.8% for the week. The Nasdaq Composite COMP +0.61%  rose 18.59 points, or 0.6%, to 3,069.20, a level that pushed it to a weekly rise of 2.3%."

"- Asia stocks fell Friday, as revived concerns over Europe in the wake of a downgrade of Spanish debt offset the Bank of Japan’s announcement of fresh easing measures. Japan’s Nikkei Stock Average JP:100000018 -0.43%  finished 0.4% lower, after rising more than 1% following the central bank’s announcement. Hong Kong’s Hang Seng Index HK:HSI -0.33%  climbed 0.3%, China’s Shanghai Composite Index CN:000001 -0.35% slipped 0.4%. Australia’s S&P/ASX 200 index AU:XJO -0.30%  fell 0.3%. South Korea’s Kospi KR:SEU +0.58%  held onto to gains, adding 0.6% after record results from Samsung Electronics Co. SSNLF +25.39% ."

"-Soybean shot higher on the open but trimmed gains to finish "just" 13 1/4 to 15 1/2 cents higher in the May through August contracts. Most new-crop contracts closed fractionally to 7 3/4 cents higher. Soybeans finished higher for the week, with old-crop contracts pacing the gains. With old-crop futures setting new contract highs and new-crop futures trading near the highs, the market will need a steady stream of supply or demand news to build upward momentum. "

FKLI- Sell-Off After Ranging For Few Sessions.

The FBM KLCI tumbled about 11.89 points to 1,567.80 while index futures went down about 5 points to 1,569.50 level as market lack of positive news to support gains. Downside risk is magnified when the index start another round of correction yesterday. We could see higher chance of further correction if there is another lower low form, which is located around 1,560 level. Technically, based on hourly chart this down trending condition is likely to prolong judging on downward sloping trend following indicators such as moving average, bollinger band, MACD and etc. For daily chart, market is showing some sign of major correction is about to happen since it has breached b below the long term support trend line last week. Upside potential is likely limited up to second pivot resistance level and traders are advised to go Short if the market does recover to resistance level.

Daily Pivot Point
R2= 1582.5
R1= 1576
S1=  1564.50
S2= 1559.50

FCPO- Awaiting Cage / Range Break 

CPO futures manage to inches up last Friday even though there was concern over upcoming May demand may deteriorate further and higher production expectation as well. The benchmark July manage to kept its gain at 3,505 on previous Friday despite volatile week for most commodities market. Palm oil prices is struggling to recover most of the time and there was less support from Soy oil as it is currently ranging as well. Despite there are some higher lows formed (no higher high yet), market is still trapped within the cage and there is no telling which promising direction they are heading to at the moment. The cage or ranging period for palm oil price is likely to meet new direction this week as the benchmark July could breach either one of the upper range or lower of the cage. But upside potential is somewhat limited due to negative palm oil fundamental expectation on early second quarter. For today, support is located around 3,470 while resistance is pegged at 3,530 level.

Daily Pivot Point
R2= 3530
R1= 3517
S1= 3487
S2= 3470
 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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