SELL ON RALLY: CIMB, SUPERMAX, MRCB & UEM LAND
Breakout Above 1,334 to Target 1,354 Next
The return of quality buying by investors and strong rebound in the region and the overnight US and European markets bodes well for longer-term bulls, which would be able to absorb profit-taking from short-term bears and promote a sustained uptrend going forward. Looking at the KLCI, a successful breakout above the recent 11 March high of 1,334 will accelerate upside momentum toward 1,354, which represent the 76.4%FR of the collapse from 1,525 all-time high to the 801 trough. The next upside target is at 1,380, while immediate support is revised upwards to 1,319, yesterday’s low, with 1,308 and 1,300 acting as stronger support platforms.
Sell on Rally CIMB, Supermax, MRCB & UEM Land
Given the bullish reversal and breakout rallies yesterday on some blue chips and lower liners due to sustained rotational plays despite the slower buying momentum, further near-term upside can be expected for these stocks. Nonetheless, we would switch recommendation to Sell on Rally CIMB, Supermax, MRCB and UEM Land toward revised higher upside targets as they approach technically overbought conditions. Note that stocks with 14-day RSI approaching 90 are ripe for profit-taking correction, which has been quite a consistent signal of a peaking rally.
source: TA securities