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Showing posts from July, 2012

Today's Market Preview (3007) – Bursa Malaysia

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There was a powerful surge on Wall Street on Friday. Major U.S. equity indices jumped between 1.5% and 2.2% at the closing bell lifted by hopes that the policymakers in the U.S. and Europe would act to boost their economies.

The positive vibes may spill on to our local bourse today. On the chart, the benchmark FBM KLCI – after a decline of 18.1-pointor 1.1% last week – could recover towards the immediate resistance line of 1,635.

Among the stocks that will likely ride on the technical rebound today include beaten-down index constituents such as Maxis, MMC Corporation and AirAsia. Meanwhile, MRCB is expected to bag a MRT contract valued at RM1b sometime this week according to one local news report. Previous day action: Malaysia Market roundupby HWANGDBS

Weekly Technicals - Malaysia inches to new all-time highs

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FBM KLCI – Inching up into uncharted territory

FBM KLCI Weekly Chart (click to enlarge)Support: 1,600 to 1,626 Resistance: 1,632

Strategy: The FBM KLCI inched up 5.83 points to close at 1,626.38 last Friday. The local market rose on moderate buying activities last week. Volume remained steady and ranged from 1.13b to
1.34b shares.

The obvious support areas for the FBM KLCI are in the 1,600 to 1,626 zone. The next resistance level of 1,632 may see some token liquidation activities. The FBM KLCI consolidated in a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above its resistance of 936.63 (Wave a/B) in Apr 2009 and surged to a previous all-time high of 1,597.08 on 11 Jul 2011. Its intermediate Wave b/B low was 836.51. We have traced out a Wave C/B (of the Flat 3-3-5 variety) rebound phase. We have revised our Wave Count of a Wave iv/B correction to 1,310.53, and the extended Fifth Wave stalled initially at 1,609.33 of the major Flat v/C/B-leg correction from the 801.2…

FBM KLCI Weekly Technical Analysis 0107

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TECHNICAL INDICATIONS
Support : 1570,1554 Resistance : 1609,1618. Bias : Upside
The cautious stance will still be a feature with the market likely to trend sideways near the 1600 level as well as to build up a base. As long as the candles track the moving averages, the trend will sustain with supports placed at 1570 and 1554. The main resistance is still the 1609 level. below: FBM KLCI Weekly chart (click to enlarge)COMMENTARY
Rebound continues … The market’s rebound continued on Friday, but remains unconvincing. Despite the key index springing up by some ten points, the gains were frittered away as the day progressed. KLCCP, which was mulling a REIT for its property assets, was the highlight of the day, rising as much as 62 sen, before settling with a 34 sen gain at close.

Still showing hesitating signs… Although the recovery resumed, it remains tepid and therefore unconvincing. However, it would seem that the index is attempting to find a
support.by Mercury Securities