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Showing posts from March, 2013

KLCI - Breakout Above 1,664 to Target 1,679

Buy Perisai & Perdana PetroleumBlue chips  continued tracking higher  on Wednesday, in tandem with gains on regional bourses, buoyed by positive economic data from the United States and resolution of Cyprus’ debt crisis. The KLCI gained 13.78 points to 1,667.57, off a high of 1,669.80 and low of 1,655.38, as gainers beat losers 418 to 270 on improved trade totaling 989.9mn shares worth RM2.24bn.

Resistance Revised Higher at 1,679
A successful breakout above 1,664, matching the 12 March high, will see next upside hurdle at 1,679, the 29 Oct high, being challenged. Meanwhile, immediate support is revised higher to 1,658, the 23.6%FR, with 1,631, the 200-day moving average, acting as stronger support, while a breakdown will test better support at 1,613, the 50%FR of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013.

Buy Perisai & Perdana Petroleum
Positive technical momentum should support further strength on Perisai to breakout above he previous hig…

FBM KLCI - After The Mini-Rise Comes The Next Drop

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KLCI minor rebound rise is over. Look out for the next declinebelow: FBM KLCI Weekly chart (click to enlarge)Support: 1,590 to 1,624Resistance: 1,626 to 1,699
Strategy:  The FBM KLCI inched down 0.75 points on a WoW basis to close at 1,626.89 last Friday. The market fell on lacklustre trading activities.  There was muted market response  to  the
positive ETP and BNM reports. Volume ranged from 0.76b to 1.20b shares traded.

The weaker support areas for the FBM KLCI are in the 1,590 to 1,624 zone.  The key resistance levels of 1,626 and 1,699 will see some heavy liquidation activities. The index consolidated in a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above 936.63 (Wave a/B) in Apr 2009.
Its intermediate Wave b/B low was 836.51. We  have traced out a Wave C/B (of the Flat 3-3-5 variety) rebound phase. We have revised our Wave Count of a Wave iv/B correction to 1,310.53. The current extended Fifth Elliott Wave (EW) of the major Flat v/C/B-leg correction fr…

62% Retracement Level Still Capping The FBMKLCI

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FBM KLCI – Capped at 1,660.46 initially. Forming the “Right Shoulder”Support: 1,590 to 1,653 Resistance: 1,660 to 1,699
Strategy:  The  FBM KLCI rebounded 16.52 points on a WoW basis to close at 1,653.96 last Friday. The market rose on low-volume nibbling activities. Volume ranged from 0.77b to 1.13b shares traded.

The obvious support areas for the FBM KLCI are in the 1,590 to 1,653 zone. The key resistance levels of 1,660 and 1,699 will see some heavy liquidation activities. The index consolidated in a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above 936.63 (Wave a/B) in Apr 2009. Its intermediate Wave b/B low was 836.51. We have traced out a Wave C/B (of the Flat 3 -3-5 variety) rebound phase. We have revised our Wave Count of a Wave iv/B correction to 1,310.53. The current extended Fifth Elliott Wave (EW) of the major Flat v/C/B-leg correction from the 801.27 low to 1,699.68 (on 4 Jan 2013) has obvious bearish divergence signals despite the index’s rise to uncharte…

KLCI - Profit-Taking on Mild Overbought Condition

Sell on Strength Gamuda & Public Bank
The local market sustained recovery on Wednesday, buoyed by regional gains after the US Dow Jones average closed at a new record high overnight on speculation global central banks will maintain stimulus measures to boost economic growth. The KLCI added 9.76 points to settle at 1,651.84, off an opening low of1,641.29 and high of 1,652.84, as gainers trumped losers 501 to 231 on improving trade totaling 1.13bn shares worth RM1.74bn.

Resistance at 1,658, Next at 1,679
Stocks are likely to gain further strength today, given the recovering buying momentum and positive market breadth, but profit-taking and selling could increase due to mild overbought conditions. Immediate overhead resistance is now at1,658, the 23.6%FR  of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013, with1,679, the 29 Oct high, acting as the next significant hurdle. Immediate support is maintainedat 1,629, the 200-day moving average, followed by 1,613, the…