BUY Glomac & Mah Sing
Stocks recovered from early losses Tuesday which was sparked by concerns over China’s slower-than-expected 1Q GDP growth, after cautious bargain hunting lifted blue chips up to close near session highs. The KLCI closed 2.76 points up at 1,700.53, off an early low of 1,688.70 and high of 1,701.26, but losers edged gainers 366 to 275 on subdued trade of 762.9mn shares worth RM1.46bn.
Support at 1,688, Resistance at 1,716
Due to buying support from local funds and rebound on overnight US stocks, the local market should recover further on cautious bargain hunting and rotational plays. Near-term support will be from yesterday’s low of 1,688, followed by the 30-day moving average currently at 1,664. Stronger retracement supports are at 1,658, the 23.6% Fibonacci Retracement (FR) of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013, with 1,633, the 38.2%FR matching the recent pivot low, providing a strong downside buffer.
Immediate resistance stays at 1,716, the record high last Friday, followed by stronger upside hurdle at 1,740, the 123.6% Fibonacci Projection (FP) target.
BUY Glomac & Mah Sing
Glomac is ripe to stage oversold rebound towards RM1.02 (150%FP), matching the upper Bollinger band, with a confirmed breakout to targetRM1.05 (22/3/13 peak) and RM1.10 (176.4%FP) going forward. Support at 95sen (123.6%FP) is reinforced by the lower band. Likewise, Mah Sing should rebound towards RM2.30 (30-day moving average), while a convincing breakout above RM2.44 (14/3/13 peak) would target RM2.60 (123.6%FP) and RM2.72 (138.2%FP) ahead. Uptrend support at the 50-day moving average (RM2.21) is in line with the lower Bollinger band.% to 243.52.
By TA Securities