Posts

Showing posts from June, 2013

Buy AZRB & Muhibbah

Softer in Response to US Fed Timeline Stocks remained in base building mode on Wednesday,with most investors sidelined amid the mixed regional tone ahead of the conclusion of  a two-day US Federal Reserve policy meeting. The KLCI was stuck in range bound trade before ending 1.17 points lower at 1,772.88, off an early high of 1,782.39 and low of  1,772.07, as losers edged gainers 417 to 352 on slow trade totaling 1.42bn shares worth RM1.81bn.

Resistance Still at 1,793, Support at 1,748
The local market could soften today in anticipationof regional weakness in an immediate reaction to the US Federal Reserve’s defined timeline to end its bond-buying program by mid-2014. Resistance capping immediate upside for the index stays at 1,793, the upper Bollinger band matching last week’s high, with subsequent hurdles at 1,800 and 1,826, the 6/5/13 peak. Key up-trend support would be from the50-day moving average now at 1,748, to prevent closure of the large gap-up with next meaningful sup…

KLCI - Malaysia Is Stable But The World May Be Volatile

Image
FBM KLCI – Stable and strong despite global volatilityabove: FBM KLCI Weekly Elliot Wave Chart (click to enlarge)Support: 1,718 to 1,775 Resistance: 1,778 to 1,826

Strategy:  The FBM KLCI inched up 6.37  points WoW on local buying to close at 1,775.59 last Friday amid global and regional turbulence. Volume ranged from 1.58b to 2.31b shares traded. The wider support areas for the FBM KLCI are in the 1,718 to 1,775 zone. The key resistance levels of 1,778 and 1,826 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, and 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 1,826.22 (on 6 May 2013) has obvious bearish divergence signals despi…