Bursa Malaysia - Further Profit-Taking Consolidation


Further Profit-Taking Consolidation

Stocks closed lower for the fourth straight session on Tuesday on continued profit-taking interest after the blue-chip benchmark index rallied to a two-year high.  The FBM KLCI was off 0.81 of a points to settle at 1,298.86, after easing from a mid-morning high of 1,304.43 and late afternoon low of 1,295.31 as losers edged gainers 361 to 290 on slower trade totaling 678.6mn shares worth RM1.06bn.

Revised Retracement Support at 1,292, Resistance at 1,308
The lessening negative market breadth amid reduced losses and slowingtrading`momentum indicate that stocks are moving  into a profit-taking consolidation phase, hence prices should trade sideways in the near-term.  As for the revised retracementsupports, the immediate level is at 1,292, matching the 38.2%  Fibonacci Retracement`(FR) of the 9 Feb low of 1,224 to the 11 March peak of 1,334, next at 1,279, the 50%FR level, and then the 61.8%FR at 1,266.  Immediate resistance will be at 1,308, the 23.6%FR similar to the 21 Jan peak, and next 1,325, last Monday’s high, and then the two-year high of 1,334.

Buy on Dip Latexx & Supermax for Rebound
Continue to take profit banking stocks AFG, AMMB, CIMB, Maybank, Public Bank and RHB Capital pending correction toward their middle or lower Bollinger bands, where more significant buying support should return.  As for lower liners, maintain buy on dip call on rubber glove makers Adventa, Latexx  and Supermax for medium-term upside. Construction related stocks Kinsteel, MRCB, Tebrau and UEM Land should stage strong recovery once buying momentum returns.
source: TA securities

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