Immediate Support at 1,329, Resistance at 1,344 Blue chips should continue to be well-supported due to the positive growth outlook on the domestic and global front, while lower liners remain in consolidation with slight downward bias.  Immediate support for the KLCI remains at 1,329, with 1,320, the 50% Fibonacci Retracement (FR) of the 12-day rally from 1,292 low of 22 March to the 7 April peak of 1,347, acting as better support. Stronger support platform is at 1,309, followed by the 1,300 psychological levels. The immediate resistance stays at 1,344, the previous two week’s high, and then 1,347, the 7 April pivot high. The upside target upon a decisive breakout will be at 1,354, the 76.4%FR of 1,525 to 801.

Buy on Dip Dialog & Kinsteel

Maintain sell on rally call for RHB Capital and Sime Darby at higher upside targets of RM6.20/6.40 and RM8.90/RM9.20 respectively given  the overbought technical condition.  As for lower liners, continue to buy on dip on rubber glove makers Adventa, IRCB, Latexx and Supermax for medium-term upside, while stocks on focus today are Dialog and Kinsteel with buy on dip call for potential further gains ahead.

by: TA securities

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