KLCI : Buy on dip IRCB, Latexx, RHB Cap
Immediate Support at 1,324, Resistance at 1,341
Stocks should stay range bound with downward bias today as US and European markets dip further overnight with concern over sovereign debt crisis spreading in Europe offsetting stronger economic data, breeding uncertainty which discourages firmer investor participation. Immediate support is revised to yesterday’s low of 1,324, and then 1,320, the 50% retracement of the 12-day rally from 1,292 low of 22 March to the 7 April peak of 1,347, matching the 50-day moving average. Immediate resistance will be at 1,341, the previous day’s low and the upper range of the gap-down, and next at Tuesday’s high of 1,349, with stronger hurdles at 1,354, 1,360 and then 1,380.
Buy on Dip IRCB & Latexx
Revert to Buy on Dip Axiata, Genting Bhd, Genting Malaysia, Maybank, RHB Capital and Sime Darby as some closed below the lower Bollinger band, which should attract buyers to cushion downside. Most lower liners that we track also closed below their lower Bollinger bands, hence bargain hunting interest should pick up on further weakness. Stocks on focus today are IRCB and Latexx, as
the former should see further technical rebound upside, while the latter dipped below the lower Bollinger band and closer to the February pivot low, hence increasing rebound potential.
by TA securities