Chart: KLCI Chart (Source: tradeSignum.com)Fundamental Commentary
The KLCI index was succesfully breaking several resistances at 1530 & 1550 levels with the buying supports from local institutions & foreign investors. The daily trading volume has increased from a daily average 1.0bil to 2.5bil with a lot of buying focus on the bluechips like finance, construction, plantation, property, oil & gas sectors. This shows the high confidence of foreign & local institutions towards global economy as well as Malaysia's. The KLCI index is trading at an attractive level and most analysts have upgraded 2011 year end target to 1700.
Technical Commentary
The KLCI index continued flying after successfully broken-out the upper line of "Symmetrical Triangle" as anticipated. It hit 1575 level before some minor profit taking activity kicks in. The KLCI uptrend was supported by huge trading volume of 2.5bil. Due to the strong run last week, the market may fall into consolidation mode with a little down trend in the coming week. Anyhow, the KLCI is still in a good uptrend mode as long as it stays above the long term uptrend line.
Technical Indicators
MACD: Bullish (Golden-cross signal).
KLCI above 50MA, 100MA & 200MA level: Bullish.
RSI stays at 80 level: Bullish, a little overbought.
Support level
1550, 1530, 1524.
Resistance level
1580, 1600.
Trading Strategy
Take profit & cutting down stock holding level to 30% stocks vs 70% cash. Stay sideline, Sell into Strength, Bargain hunting on good fundamental stocks when market dips again.
Favourite Stocks Recommendations
Finance: Maybank, CIMB, RHBCAP, PBB.
Consumer: CI Holdings, GuanChg, TWS, QL,
Construction: Kimlun, Sunway, Gamuda, Wct.
Healthcare: KPJ, Faber.
Plantation: BStead, TDM, THPlant, TWSPlant, TSH.
Trading/services: Analabs, Kfima, QSR.
Gaming: Genting.
Telecommunication: Axiata, Digi.
Environmental: Cypark.
Oil & Gas: Kencana, Pchem, PETDag.
Industrial: Ajiya, CanOne, DRBhicom, Daibochi, HPI, LIONind.
No comments:
Post a Comment