FBM KLCI Resistance at 1,840, Next at 1,860
BUY Axiata & Genting Bhd for Rebound
Blue chips on Bursa Malaysia rose on Monday, copying regional strength after a weak factory survey in China fueled speculation the country will adopt stimulus measures to boost the economy. The KLCI rose 13.37 points to close near session highs at 1,833.85, off an early low of 1,821.03, as gainers led losers 428 to 370 on active trade totaling 1.94bn shares worth RM2.01bn.
Resistance at 1,840, Next at 1,860
While blue chips should stay buoyant on 1Q window-dressing activity, lower liners and small caps are likely to remain in consolidation amid slower trading momentum. Immediate resistance for the index stays at the upper Bollinger band leveling at 1,840, while 1,860, the 123.6% Fibonacci Projection (FP), will be next stronger hurdle, followed by the all-time high of 1,882. Immediate support remains at the recent low of 1,802, while 1,797, the 38.2% Fibonacci Retracement (FR), and the 200-day moving average level at 1,795 provides crucial uptrend support.
BUY Axiata & Genting Bhd for Rebound
A confirmed breakout on Axiata above RM6.60 (61.8%FR), matching the upper Bollinger band, would boost upside momentum towards RM6.85 (76.4%FR), with RM7.00 and RM7.27 (6/5/13 peak) as tougher upside hurdles. Key retracement support is at RM6.39 (50%FR). A daily stochastics buy signal on Genting Bhd should support an oversold rebound towards
RM10.00 (76.4%FR), with RM10.20 and RM10.40 (23/1/14 peak) as stronger resistance. Key retracement support at RM9.57 (50%FR) mirrors the lower Bollinger band.
by TA Securities
