KLSE : SWITCH SELL ON RALLY: AFG, AMMB, SIME DARBY, TENAGA,TM - TA

The first black candle  (on Wednesday) registered on the KLCI chart after twelve straight trading sessions imply waning upside momentum and higher likelihood for profit-taking correction to follow.  With market conditions becoming increasingly overbought, we expect a more significant profit-taking resistance near 1,354, which represent a key Fibonacci retracement hurdle.  Immediate support is retained at Monday’s low of 1,339, with subsequent supports at 1,329 and 1,319, representing the previous two days’ lows.

Switch to Sell on Rally blue chips AFG, AMMB, Sime Darby, Tenaga and TM as they become increasingly overbought, hence a profit-taking correction ahead is very likely.  On the other hand, any further weakness on Genting Bhd shares towards the January low of RM6.20 is good buying opportunity for technical rebound upside to RM6.80.  Adjust call on Supermax to
Take Profit as further rally will increase overbought technical conditions and trigger profit-taking correction.

source: TA securities