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

Buy Perisai & Perdana Petroleum

Blue 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 high of 21/11/12 (RM1.17) and test the123.6%FP (RM1.33), with crucial support seen at the 76.4%FR (RM1.00). Meanwhile, Perdana Petroleum need breakout above the upper Bollinger band (RM1.33) to boost upside potential towards the high of 12/03/13 (RM1.37), with stronger resistance coming  at the uncharted territory of 123.6%FP (RM1.55). Immediate support is seen at 76.4%FR (RM1.18).

 

by TA Securities

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