KLCI to Re-Test 1,347 High and Challenge 1,354
The sustained uptrend on global stock markets, with overnight US stocks leading the rise on better-than-expected results in the early first quarter earnings season and strong retail sales, would offset overbought technical conditions and provide further boost to the local market.  As such, the index should ascend higher to re-test the recent high of 1,347 and then challenge 1,354, which represent the  76.4%FR of the tumble from 1,525 all-time high to the 801 low.  Meantime, expect immediate support from 1,331, which represent last Thursday’s correction low, to hold and prevent further downside risk toward 1,319, which represent the 50% correction of the 12-day rally from 1,292 low of 22 March to he 7 April peak of 1,347.  Stronger support platforms are at 1,309 and the 1,300 psychological levels.

Buy on Dip Jaks Resources and Leader Universal
Maintain Sell on Rally banking stocks Public Bank, AFG and RHB Capital as overbought technical momentum calls for profit taking correction.  Dialog, Kencana and Sapuracrest should gain momentum toward its immediate upside target of RM1.20, 1.80 and RM2.60 respectively.  Stocks on focus today are Jaks Resources and Leader Universal with a buy on dip call for good potential of further gains ahead.

source: TA securities

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