More Doldrums
- Lack of decent economic data is driving the JCI to gains and losses recently. Although the technical outlook looks increasingly negative, there is no critically damaging event nor data from both domestic and overseas to push JCI off the cliff at the moment.
- Still, the index remains range-bound and with most of the listed companies have delivered their 3Q13 earnings, we’re back searching for new catalysts to move the market.
Fed Watch
- No decent data scheduled makes Fed chatters the next big thing in the horizon. Janet Yellen nomination will be another event to anticipate. Yellen looks set to replace Ben Bernanke early next year as the Fed chairman. Yellen is viewed as stimulus-supporter and her chairmanship is viewed to be stock-friendly.
Technically Speaking...
- JCI took another dive on Monday and set up a somewhat bearish outlook as the index bounced off its resistance at around 4,470.
- Recent low at 4,403 will be a key-near-term support for the index for if it falls, the prior low at 4,357/58 is likely to be the next target. The next crucial support will be the one at 4,313/14 and followed by 4,207.
- EMA-band now will become the near-term resistance, until the recent high at 4,611 is tested ahead of 4,791 key resistance.
- We are somewhat within a large consolidation range between 4,791-4,313 but with a negative bias as the index is now below its EMA-band. MACD has turned lower again while RSI is approaching the oversold area.
- No changes on the recommendations fow.
Day Ahead
Lack of catalysts will bring back the Fed to the center stage. On Thursday the hearing on the nomination of Janet Yellen to replace the soon departing Ben Bernanke will take place. There should be no significant hurdle to derail Yellen’s chance to be the next Fed chairman, and this should be positive for the stocks as Yellen is a supporter of Fed stimulus.
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