This morning, KLCI indeks rose 19.41 points to record a new high at 1461.84 after market set the lowest points 1,310.53 last months. It was broke the analyst resistance level at 1445-1453 point. Within this current positive market sentiment, some analyst believe that the "bear" market was over and new upleg was created.
As on last week, the FBM KLCI rose 42.38-points to close at 1,442.43 point last Friday. The local market remained volatile but surged up well as EUROZONE worries diminished after Slovakia helped to ratify and enlarge the EFSF fund. The news that the G20 nations issued a communiqué to resolve the European debt crisis also helped sentiment at the weekend.
The obvious support areas for the FBM KLCI are in the 1,392 to 1,442-zone. The next resistance levels is 1,500 will see heavy liquidation activities. The local market had peaked on 11 July 2011 at the all-time high of 1,597.08 and a softer phase had emerged to the 1,310.53 low. Two possible levels where the rebound may be contained are 1,487.62 and 1,500 points.
The EUROZONE debt worries may have diminished somewhat with Slovakia’s EFSF ratification. Nevertheless, investors should still remain vigilant if any unusual volatile moves to the downside may suddenly emerge – due to unforeseen events.
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