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By Zhuge Liang 
KLCI Weekly Technicals FA + TA
Support:
877 to 919
Resistance:
936 to 970
Strategy:
The KLCI rose last week, led by a rise on further buying on plantation counters. IOICORP moved in a volatile manner, as a foreign brokerage downgraded its call on the stock. CPO Futures also traded in a wild range and plantation counters gyrated in a large range too.
The firm support area for the KLCI is located at the 877 to 919-zone. The resistance areas of 936 and 970 may see some profit-taking activities. The market had been oversold since Oct ’08 and we are poised for a pre-CNY rebound to between retracement areas of 940 to 994 for the KLCI. In the weekly Elliott Wave picture, the KLCI is tracing a broad Wave 4 consolidation phase. As the KLCI broke above 926, then there is potential for a Wave 4 extended rebound towards 940, 960 and 994 points in the next 3 weeks.
We believe that the KLCI and selective counters on the local bourse could be relatively strong – despite the volatile gyrations of the American indices to the downside, based on weaker economic figures there (like higher unemployment).
The US awaits the swearing-in ceremony of Presidentelect Barack Obama on 20 Jan ’09 and also the first US FOMC meeting on 28 Jan ’09 for further direction – amid a gloomy economic picture there.
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KLCI Weekly Technicals FA + TA
Support:
877 to 919
Resistance:
936 to 970
Strategy:
The KLCI rose last week, led by a rise on further buying on plantation counters. IOICORP moved in a volatile manner, as a foreign brokerage downgraded its call on the stock. CPO Futures also traded in a wild range and plantation counters gyrated in a large range too.
The firm support area for the KLCI is located at the 877 to 919-zone. The resistance areas of 936 and 970 may see some profit-taking activities. The market had been oversold since Oct ’08 and we are poised for a pre-CNY rebound to between retracement areas of 940 to 994 for the KLCI. In the weekly Elliott Wave picture, the KLCI is tracing a broad Wave 4 consolidation phase. As the KLCI broke above 926, then there is potential for a Wave 4 extended rebound towards 940, 960 and 994 points in the next 3 weeks.
We believe that the KLCI and selective counters on the local bourse could be relatively strong – despite the volatile gyrations of the American indices to the downside, based on weaker economic figures there (like higher unemployment).
The US awaits the swearing-in ceremony of Presidentelect Barack Obama on 20 Jan ’09 and also the first US FOMC meeting on 28 Jan ’09 for further direction – amid a gloomy economic picture there.
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