The last 2 days' market action look
almost like a bearish engulfing pattern, according the Japanese candlestick charting. The daily MACD is also poised to do a negative crossover. Having said that, the CI is up 7 points to 1064.23 as at 10.00 a.m. this morning. It is noticeable that the top gainers are devoid of significant volume except for Sime, GHope & Gurthrie; all of which are up on news of a possible merger to form the biggest plantation group in the country.
On weakness, I believe the CI may pull back to test the horizontal support of 1050 & the 10-day SMA of 1045. These levels should be able to hold up the market as it corrects the excess of last Friday & this Monday.
Chart: CI's daily chart as at Nov 28
In view of the above, you may use this morning's improved prices to raise some cash in order to take advantage of any correction that may roll in later.
your call on rubhd is very good, what is your target?
ReplyDeleteI think RM2.15-2.20 could be a fairly strong resistance for this stock. For short-term investors, that's a good level to take profit.
ReplyDelete