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Friday, November 26, 2010

KLCI to test crucial support - 26112010

KLCI Daily Commentary
Refer to KLCI daily chart, the KLCI hit the new high of 1530 and retreated to 1488 level which is about 5% retreatment. The index fall into a short term down trend after falling below the middle line of the Bollinger bands, and formed a lower high pattern. The profit taking was partly due to the uncertainties happening globally such as the War threat between North Korea and South Korea, and the EU countries bailout issues in PIIGS.

Resistance levels
1500, 1505, 1530

Supports level
1480, 1465

Near term outlook
Bearish - Short term downtrend, heading towards 1480 level.

Long term outlook
Bullish - Long term uptrend, as long as the index stay above the main uptrend support line.

Trading opportunity
Cautiously pick up some good fundamental stocks during profit taking.

Favourite stocks recommendations
  • Finance - Maybank, CIMB, RHBCAP, PBB.
  • Consumer - CI Holdings, TWS.
  • Construction - Sunway, Gamuda.
  • Healthcare - KPJ, Faber.
  • Plantation - BStead, TDM, MHC, Cepat.
  • Trading/services - Kfima.
  • Gaming - Genting.
  • Telecommunication: Axiata.

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