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Thursday, December 13, 2012

Market Outlook as at December 13, 2012

Despite Fed's announcement of QE4, most Asian markets are non-plus this morning. On the local front, FBMKLCI and FBMEmas were up marginally as at 12.00 noon. This is simply because the Asian market and our stock market have been up for the past few days. In fact, we can see from the charts below that FBMKLCI and FBMEmas were trying to climb above the previous uptrend line, SS. That this coincides with a strong horizontal resistance would make further upside move not very likely within the next few days. So, we can expect a mild correction to set in. Those, who had purchased some badly beaten stocks in late November that had risen smartly over the past few days, are well-advised to take some profit.



Chart 1: FBMKLCI's daily chart as at Dec 13, 2012_12.00pm (Source: Quickcharts)


Chart 2: FBMEmas's daily chart as at Dec 13, 2012_12.00pm (Source: Quickcharts)

12 comments:

hng said...

Hi Alex

Can you comment on MAS? what is support and resistance level?

The proposed 3 for 2 right share at 60sen, is the main reason for the selloff. However, it may also pose opportunity to grab some for technical rebound, then what is safer entry price if there indeed have odds to rebound.

Ivan said...

Genting Singapore trade above SGD 1.33. DOes it a reverse pattern / rebound for this stock?

TQ

Mat Cendana said...

I went in for TM a few weeks ago when it looked to be so `cheap'. There was always the risk that cheap might become cheaper. But when a quality stock reaches a certain level, you simply can't resist. Fortunately, it rebounded significantly this week. Wouldn't be surprised if there's some correction after this.

Anom said...

Hi Alex

What is your opinion on the market if BN lose GE13?

Alex Lu said...

Hi hng

MAS has made a new all-time low. Like stocks that made a new all-time high, we cannot be sure how far it would go. MAS's support will be psychological support, such as 50 sen. I am not saying that MAS will go to that level nor am I saying that that support would hold. We just can't tell where it would bottom out. The sad truth is that we still have not seen a convincing recovery plan for MAS.

Alex Lu said...

Hi Ivan

Genting Singapore has good support at S$1.20 & resistance at S$1.40. It is in the process of finding a bottom.

Alex Lu said...

Hi Mat Cendana

TM's immediate resistance is at RM5.90-6.00. Its support is its recent low at RM5.35 which happens to be its 200-day SMA line.

Alex Lu said...

Hi Anom,

I don't think BN will lose.

hng said...

Hi Alex

Can you comment on Uchitech? Currently share trade cum interim dividend of 5sen TE. It is likely retain another final dividend of 7sen TE next Feb, thus investor could expect total 12sen TE dividend in 3 month time. However, its seem stock remain sideways, what is the support and resistance level?

Alex Lu said...

Hi hng

Uchitech's latest result is an improvement over the preceding quarter's result.

It pays dividend of 12 sen which translates to a dividend yield of 10%.

Its immediate resistance & support is at RM1.25 & RM1.10.

For income purpose, this is a good stock to hold.

cheeheng said...

Hi Alex,
What is your take on Amedia?
I hold Amedia shrs and I'm just wondering if I should sell now or go thru the bonus + free warrant exercise.I bought Amedia at lower than current price.

Alex Lu said...

Hi cheeheng

Amedia is coming very near to its strong horizontal resistance at RM0.465-0.47. If it can break through that, it may go to RM0.58 to close the gap.