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Showing posts from March, 2012

FBM KLCI Weekly Technical Analysis: Rising Wedge

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Still within the second FBMKLCI Rising Wedge
  FBM KLCI – Sell at the upper band of the Rising Wedge.
  CPO Futures – To attack MYR3,465 & higher. 
  DJIA – Intra-week consolidation for the Dow.
  CRESNDO – A high yield (6.95%), low PE (5.3x) & 0.62 P/BV laggard stock. 

FBM KLCI Weekly Chart :Support: 1,549 to 1,585  Resistance: 1,587 to 1,597

Strategy: The FBM KLCI gained 14.43 points to close at 1,585.83 last Friday. The local market rose in small daily spurts, with buying on some selective blue chips as well as obvious penny stock plays. Volume expanded from 1.81b to 3.59b shares last Friday. 

The obvious areas for the FBM KLCI are in the 1,549 to 1,585 zone. The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities. The FBM KLCI consolidated in a tight range
of 801 to 936 from October 2008 to April 2009, but broke above its resistance level of 936.63 (Wave a/B) in April 2009 and surged to an all-time high of 1,597.08 on 11 Jul…

Bank Negara Malaysia Annual Report briefing key takeaways

Banking
GDP growth target for 2012 is 4-5%. DBS economists forecast for 2012 GDP growth is 4.5%. Growth will largely be driven by private consumption and investments, and supported by public spending. Construction and oil & gas will be the key growth sectors in 2012, while services and manufacturing will continue to support the economy. Agriculture growth is expected to moderate due to the moderating commodity prices. 

The Governor stated that there is no concern on the level of household indebtedness. Growth in
household debts moderated to 12.5% from 13.7% a year ago, and this growth is supported by household deposits which expanded by 12.2% (2010: 7.9%). Household debts as a proportion of GDP have stabilized at 76.6% (2010: 75.8%). The Central Bank does not expect to introduce any further consumer lending rules after a series of pre-emptive measures implemented over the last two years, but will continue to monitor the household indebtedness levels. We understand that the res…

FBM KLCI Weekly Technical Analysis

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A possible re-test of 1,597.08 
*  FBM KLCI – May try to re-test 1,597.08. 

below: FBM KLCI Weekly Chart (click to enlarge) Support: 1,530 to 1,583
Resistance: 1,587 to 1,597
Strategy:  The FBM KLCI gained 25.01 points and closed at 1,583.78 last Friday. The local market firmed up in active trading on selective and key blue-chip stocks. Smaller local volumes of between 1.62b to 1.94b shares were registered. 

The obvious support areas for the FBM KLCI are in the 1,530 to 1,583 zone. The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities. The FBM KLCI consolidated in a tight range of 801 to 936 from October 2008 to April 2009, but broke above its resistance level of
936.63 (Wave a/B) in April 2009 and surged to an all-time high of 1,597.08 on 11 July 2011. Its intermediate Wave b/B low was 836.51. We traced out a Wave c/B (of the Flat 3-3-5 variety) rebound phase to its all-time high of 1,597.08 (c/B). A downward “killer” large-scale “Wave C” is�…