KLCI : Buy on Dip TEBRAU & UEMLAND

Support at 1,329, Resistance at 1,344
We expect further consolidation today as most investors are likely to stay sidelined ahead of the weekend, but cheap penny third liners are likely to attract retail participation on rotational basis. The immediate support for the index is still 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, as better support. Stronger support platform is at 1,309, followed by the 1,300 psychological level. Immediate resistance remained at 1,344, last week’s high, and then 1,347, the 7 April pivot high.  The upside target upon a decisive breakout is 1,354, the 76.4%FR of 1,525 to 801.

Buy on Dip Tebrau & UEM Land
Revert to Sell on Rally blue chips RHB Capital and Sime Darby as overbought technical condition and weak buying momentum necessitates a profit-taking correction, while most lower liners extend consolidation.  Stocks in focus today are property and construction related stocks Tebrau and UEM Land, which are ripe to rebound from recent consolidation given the promising hook up on their technical momentum indicators.