Posts

Showing posts from September, 2016

Bursa Malaysia - Caution With Focus on OPEC Meeting

Image
Stocks fell on Tuesday, with most investors sidelined amid lack of local leads and attention focused on the first direct US Presidential debate. The KLCI slipped 4.78 points to end at 1,664.72, after ranging between high of 1,666.69 and low of 1,661.58, as losers beat gainers 426 to 338 on slower turnover of 1.48bn shares worth RM1.85bn.

Support at 1,655/1,648, Resistance at 1,678 Local market sentiment should remain cautious today, with investors to focus on the meeting of OPEC producers for leads. Immediate support for the index will be at the 100-day ma at 1,655, next at 1,648, the 3 Aug low, and recent low of 1,645, with stronger support seen at 1,616, the 50% retracement of the 1,503 low of August last year to the April high of 1,729. Immediate resistance is at 1,678, the 30-day moving average, with tougher resistance seen at the 1,700 psychological level and subsequently 1,729.

Buy on Weakness IHH & RHB Bank
Any further correction on IHH shares towards the 61.8%FR (…

FBM Small Cap Index - Bulls Are Under Bearish Pressure

Image
The current market is weak as the bears are still in charge. Last Friday, the FBMSC rebounded by 61.86 pts to settle at 15,169.40 pts. It formed a white candle that pierced more than half of the prior black candle’s body. This usually signals that the positive momentum is revving up. Nevertheless, until we witness a solid bullish follow-through, we think that the index is merely taking a breather. This is a normal reaction, especially after the series of weak performances that breached firmly below the 50-day, 100-day and 200-day SMA lines in the last two weeks. Overall, our near-term negative outlook remains intact.

Currently, we see that that the FBSMC is situated at its lowest level since July. In the absence of a solid positive development, this indicates that the bears are still in dominance over the bulls. This is also supported by the fact that the 14-day RSI Indicator is below the 50-pt neutral level, which points towards a weak outlook.

We keep the immediate support a…