Bursa Malaysia - Lower Liners Strength Lift Market

Technical Buy On TRC Synergy & WCT

Bursa Malaysia shares reversed earlier losses to edge into positive territory yesterday, with strong buying interest lifting lower liners and small cap stocks, in tandem with key regional markets which turned higher in spite of little overnight news flow from outside of the region to influence trading in Asia. The KLCI gained 9.03 points to close at 1,776.16, off an early low of 1,765.94 and high of 1,779.64, as gainers edge losers 633 to 239 on robust trade totaling 2.58bn shares worth RM2.75bn.

Resistance at 1,791 & Support at 1,765
As for the index, immediate resistance is seen at 1,791, representing the 138.2% Fibonacci Projection (FP) of the 1,526 low of May 2012 to the1,718 high of April 2013, with 1,814, the subsequent  150%FP,  and  the  record  high  of  1,826  providing  stronger  resistance.  Support
for the index remains at last week’s low of 1,765,  followed by the pivot lows of 1,752 of 10 May and 1,743 of 6 May, while the 1,718 to 1,743 gap will act as a critical support platform.

 

Buy TRC Synergy & WCT
TRC Synergy could accelerate further to challenge the upper Bollinger band (RM0.66), with a confirmed breakout to target the 61.8%FR (RM0.68)and the peak of 09/02/12 (RM0.79), going forward. Key retracement support is at the 23.6%FR (RM0.56). Meanwhile, any pullback  on  WCT  towards  the  76.4%FR  (RM2.51)  would  be  a good  buying  opportunity  for upside towards the upper Bollinger band (RM2.74) orthe peak of 20/05/13 (RM2.78), with higher profit target seen at the 123.6%FP (RM2.96) ahead.

 

by TA Securities

Popular posts from this blog

Malaysia Inflation to start easing end-3Q or early 4Q2011

Image
Malaysia Inflation Rose To The Fastest Pace.
Inflation is still a major concern and we expect the upward pressure to stay in 3Q2011 coming from food & non-alcoholic and clothing/footwear in  view of the festive seasons. Impact from June’s electricity tariff hike is expected to continue. But the  upward inflation pressure can be contained from stronger RM/USD and high base comparison. Nonetheless, we expect inflation to start easing by end 3Q2011 or early 4Q2011. Meanwhile, with global uncertainties flared by euro debt crisis and slower US economic recovery lingering, it has forced AxJ policymakers to focus on growth as opposed to inflation. Rates hikes could be reaching its tail end. We expect BNM to accommodate further erosion in real returns by holding OPR at 3.00% to focus on growth. But possibilities for another 25bps hike in OPR remains, as it depends on inflation outlook. Likewise SRR hike will depend on liquidity inflow. If that happen, we expect another 50bps to 100bp…
Read more

Trump’s Win – Bark Worse Than Bite?

Image
While Asian equity markets may remain soft after the surprise of Donald Trump’s win in the US presidential election, we look forward to buying opportunities. Essentially, we do not expect significant economic repercussions on Malaysia’s economy or corporate earnings, save for the indirect impact on downward biases for the ringgit vs the US dollar and on interest rates. We highlight the trough prices of our conviction picks, as well as some buying opportunities.

WHAT’S NEW
• Near-term confidence pricked. Asian equity markets have swooned on knee-jerk reactions to Trump’s surprise win; the FBMKLCI eased 1%. Despite the major turnaround in US equities after Trump’s acceptance speech which promoted national unity and stressed on fiscal stimulus (the DJI futures initially fell by as much as 800 pts before the cash DJI remarkably recovered to positive territory), investment sentiment in Asia may remain damp and to be swayed by Trump’s anti-globalisation rhetoric. Nevertheless, we do not …
Read more

FBM KLCI Technical Outlook

Image
Stocks on Bursa Malaysia snapped a three-day losing streak to end higher last Friday on bargain hunting in selected heavyweights, which saw late fund buying of Tanaga Nasional and Malayan Banking. Bargain hunting by institutional funds supported the local market but further gains were limited by fears of a better-than-expected US third-quarter gross domestic product data which will be out later of the day. Asian stock markets were mixed as they were still affected by a flurry of major corporate earnings reports across the region and the declining oil prices. The ringgit weakened further against the US dollar at 4.1970/1020 from the 4.1810/1900 recorded on Thursday, tracking the performance of emerging Asian currencies. At close, the FBM KLCI settled at 1,670.27, up 1.24 points or 0.07%, from Thursday’s close of 1,669.03, after opening 0.58 of a point higher at 1,669.61 and moved between 1,666.97 and 1,671.72 throughout the day. On a weekly basis, the benchmark index gained 0.29 of a p…
Read more