Bursa Malaysia - Sidelined Ahead of GE13
The local stock market clawed back into positive territory from early decline on Tuesday, in line with most regional markets as sentiment was boosted by better housing data in US and expectations that the Federal Open Market Committee would reaffirm their monetary stimulus measures. The KLCI gained 9.68 points to close at 1,717.65, off an early low of
1,702.83 and high of 1,718.44, but losers beat gainers 443 to 254 on improved trade totaling 811.6mn shares worth RM2.26bn.
Resistance at 1,718 & 1,740
Investor sentiment should remain tepid ahead of a holiday-shortened trading week, and with most market players choosing to remain sidelined pending the outcome of the GE13
this weekend. Immediate resistance remains at last Friday’s intra-day record high of 1,718, while a breakout would target 1,740, 123.6% Fibonacci Projection (FP) level. Meanwhile, immediate support stays at the previous 1,699 record high of Jan 2013, with better support coming from the 30-day moving average now at 1,682.Stronger retracement supports are at 1,658, the 23.6% Fibonacci Retracement (FR) level, and 1,633, the 38.2%FR.
SELL MMHE & Petronas Chemicals
Bearish technical momentum on MMHE could force share price lower towards the low of
29/03/13 (RM3.75), while a breakdown would grease downside towards the low of 28/10/10 (RM3.69), before buyers return for bargain hunting. Meanwhile, any further upside on Petronas Chemical towards the upper Bollinger band (RM6.56) would be good opportunity to sell ahead of eventual correction towards the 30-day moving average (RM6.41),with stronger supports coming at the lower Bollinger band (RM6.30) and the 38.2%FR (RM6.09).
By TA Securities