Regional Stock Market Indices Commentaries - 21 April 2008

Kuala Lumpur : KLCI Set to test 1,300 resistance level

The performance of KLCI in the past few weeks, particularly after the post-general election sell down have created a short term up trend, with higher lows and higher highs. The KLCI closed at 1267.65 points which about a month ago where the lowest level was 1157.47 points. However, the major trend is still down and the major resistance is at 1,360 points.

The up trend is supported by a good momentum and therefore it is expected to increase this week and test the intermediate resistance level at 1,300 points, which is defined by a mid-term 60 day moving average. If the KLCI is able to overcome this level, it may start to test the major resistance level and break the down trend. Support level is currently at 1,220 points.

Singapore: STI Gearing upwards

The FTSTI has tested the longer term 90-day moving average resistance level in early April and today it tests this level again. The FTSTI has been in a down trend since December last year. Today the FTSTI stands at 3,124.87 points. The momentum of the developing up trend is strong and therefore the FTSTI is gearing upwards to break higher above this resistance level and test the next resistance level at 3,300 points.

The tightening of the Bollinger Bands shows that the STI is expected to strongly move into a direction soon. Support level is currently at 3,000 points.

Thailand: SETI Upward momentum building up

Upward momentum is building up on the SETI. The SETI closed at 845.40 points, just slightly below the resistance level. The trend is currently sideways as the short to long term 30 to 90 day moving averages direction is sideway. With a strong momentum building up, the SETI is expected to break the resistance and move forward to next resistance level, which is the psychological 900 points level. Currently the support level is at 800 points.

Hong Kong: HSI set to positively come out of trading range

The HSI has been in a sideway market since late January between support level of 21,000 points and resistance level of 25,000 points. The HSI is currently at 24,197.78 points. Therefore it is near the resistance level. The current short term up trend is supported by a good momentum and therefore it is likely going to break the resistance level to the next resistance level at 28,000 points. The current support level is at 22,500 points.

US: DJI is expected to climb higher

The DJI ended on a very positive note last Friday, closing 228 points or 1.8% higher at 12,849.36 points. It also broke the down trend resistance level 12,800 points and stayed above it. Although the short term and intermediate trend has started to go into an up trend (increasing 30 and 60 day moving average), the long term trend is still down. The DJI has to stay at least above 12,700 points to turn into a long term up trend. Therefore, this level is set as the current support level.

With the resistance breakout on Friday, the DJI is expected to climb higher to test the next resistance level at 13,700 points.