Thursday, 20 April 2017

21 Apr 2017 - Range bound ahead of the holiday weekend?

A wider price band was seen on 20 Apr, with a 7.16-point range traded between 1,743.56 and 1,736.40. The index rose by 2.66-points on minor nibbling activities to settle at 1,741.61. 

Supports at 1,724, 1,736 and 1,741 may be obvious for 21 Apr, whilst clear profit taking at the 1,743, 1,751 and 1,759 resistance areas will cap rebounds. Two indicators (DMI and Stochastic) we monitor are positive, signalling that a further medium-term price rise may be possible (as the index held above 1,651.45). 

Investors may range trade, as the index turned into neutral territory and moved between the 18 and 40 SMA. The FKLI contracts (Apr, May, Jun & Sep 2017) moved around par (ranging from 2.89-points premium to 3.11-points discount) against the index on position adjustment activities. 

Despite the US and UK markets' firmer performance on 20 Apr, the index may be range bound today ahead of the long holiday weekend. Obvious bearish divergence on its CCI and MACD Histogram may cause some profit taking on rallies for the FBMKLCI today. The CCI, Oscillator and MACD have issued sell signals as well.

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