Blue chips stayed in consolidation mode Wednesday as regional markets were mixed, but rotational plays on selective lower liners highlighted trading. The FBM KLCI ended down 2.26 points at the day’s low of 1,333.64, off an early high of 1,339.15, dragged down by losses on CIMB, Tenaga and BAT, as gainers edged losers 399 to 288 on better trade totaling 875.5mn shares worth RM1.29bn.
The consolidative mood on blue chips should force the index to stay range bound, but lower liners continue to highlight on selective rotational plays. Immediate support is retained at 1,329, with 1,320, the 50% Fibonacci Retracement (FR) of the 12-day rally from 1,292 low of 22 March to the 7 April peak of 1,347, as next immediate support. Stronger support platform is at 1,309, followed by the 1,300 psychological level. Immediate resistance is at 1,344, last week’s high, and next 1,347, the 7 April pivot high. The upside target upon a breakout is 1,354, the 76.4%FR of 1,525 to 801.
Gamuda and Sime Darby could rise further in the near-term as share price closed above the upper Bollinger band signaling breakouts, while Adventa showed good upside potential with a close just above the mid Bollinger band. Most lower liners remained in base building mode, but today’s stocks on focus 3A and Jaks Resources could rebound and buck the overall consolidation trend with hook ups on momentum indicators suggesting positive accumulation.
by: TA securities
