What should we observe???
· Investors are taking profits after DJIA increase for the 7th consecutive days. Yesterday DJIA closed on green as Bank of America shares helped to squeeze out the gains in the 8th straight days. From 28 Jan to 9 Feb, the Dow increased from 11,823.7 to 12,239.9 within 8 consecutive trading days.
· Investors are anxious about inflation everywhere. China increased interest rate for the second time 2 days ago and may increase for the 3rd time in four months. Instead of increasing interest rate, Federal Reserve Chairman Ben Bernanke lowered bond yield to curb inflation.
· China will announce its inflation data tomorrow.
· Federal Reserve Chairman Ben Bernanke said the world’s largest economy, US remains weak despite a drop in unemployment rate earlier. Investors may have doubt on the stability of US economy after the comments.
Let’s work out something on Malaysia market….
As there are many uncertainties blowing in the market, many confirmations have to be made technically before we conclude it. Anyhow, the first critical point to observe is the 1,500 psychological level. As of 4:47pm FBM KLCI was 1,509.50, which dropped 26.57 points or 1.73%. FBM KLCI February future was bearish as well, dropping 23 points from 1,525 from Wednesday close to 1,502.
If it happens, I'm eyeing on the 1,480 and 1,430 support lines. Otherwise, 5th wave will continue. Resistance is lying in between 1,545 and 1,560.
(Sources: Bloomberg, the Edge)
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.