Will FBM KLCI break resistance at 1,620 and 1,650 points?

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FBM KLCI Expected to Face Resistance at Key Levels Next Week

The FBM KLCI is anticipated to trade higher in the upcoming week, though it is expected to encounter immediate resistance at the 1,620 and 1,650 points levels. For the week that concluded on April 10, the benchmark FBM KLCI experienced a notable increase of 26.9 points, closing at 1,612.25, up from the previous Friday's close of 1,585.35.
Expected Market Movement and Sector Performance

Analysts suggest that the local bourse may experience some minor consolidation due to profit-taking in property stocks following their recent rally. Banking stocks are predicted to remain within a range-bound pattern. However, buying interest is expected to expand in healthcare stocks, with the technology sector poised for a comeback after a period of underperformance. The FBM KLCI is projected to trade between 1,600 and 1,650 points, influenced by several bullish signals.
Factors Influencing Market Sentiment

Market sentiment is expected to be influenced by ongoing developments concerning the new wave of Covid-19 outbreaks in Europe and parts of Asia. While this could potentially boost glove counters on the local bourse, it also presents a risk of disrupting the trajectory towards global economic recovery. This cautious outlook suggests that while upward movement is possible, significant breakthroughs beyond the identified resistance levels may be challenging without further positive catalysts.
Previous Week's Performance and Support Levels

The preceding week saw the local bourse trade lower for the initial two days, attributed to profit-taking in heavyweight stocks, despite positive cues from Wall Street which reached record highs on favourable economic data. However, Bursa Malaysia rebounded in the subsequent three days, concluding the week on a firm note due to bargain-hunting activities, successfully surpassing the 1,600 points psychological level. Key support levels for the FBM KLCI remain established at 1,575 and 1,560 points.

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Will FBM KLCI break resistance at 1,620 and 1,650 points?

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