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
