KLSE Next Week

Immediate Support Upgrade to 1,308, Upside Bias to 1,325/1,334 Next Week Trading sentiment should remain upbeat until next week, as investors would be eagerly anticipating the NEM to be unveiled by the PM in the Invest Malaysia forum.  As the KLCI managed to sustain above 1,308 yesterday, there is increasing upside potential toward 1,325 and subsequently the two-year peak of 1,334 by next week.  As such, immediate support is upgraded to 1,308, with 1,300 and then 1,292, the 38.2%FR, acting as stronger supports.

Upgrade Call to BUY Breakout Stocks
More lower liners staged breakout rallies above their recent highs or upper Bollinger bands yesterday, and hence should enjoy further gains as buying momentum strengthen.  As such, we are upgrading call to BUY stocks with share price closing above the upper Bollinger band, with focus on Dialog, Kencana, SapuraCrest, 3A Resources, Adventa, Latexx and Supermax.  On the other hand, take profit or sell Jaks Resources due to the weak closing below the upper Bollinger band which is bearish, signaling further correction potential.

source: TA Securities