Tuesday, October 27, 2009

Market Outlook as at Oct 27, 2009

The market is undergoing a corrective phase, which may see the FBMKLCI testing the 20-day SMA line support at 1243 (similar to the last 2 correction denoted as 'B' & 'C'). If this level failed, then the KLCI may test the 50-day SMA line support at 1211 (see the correction in June & July, denoted as 'A').

Chart: FBMKLCI's daily chart as at Oct 26, 2009 (Source: Quickcharts)

After seeing a few uptrend line violations among blue chips & near blue chips, I have a feeling that the market may be nearing a temporary top. However, the relatively bullish undertone in the market is such that the price of these stocks has yet to drop significantly, but has instead been moving in a sideway fashion. Some of the stocks that had violated their uptrend line are Astro, Axiata, Boustead, Unisem and WCT.


yumi said...


Yes, try to collect some Axiata this morning at your recommended price 2.85-2.90 but can't get! So bad...


Alex Lu said...

Hi Yumi,

Axiata at the present price of RM2.92 is more attractive than Maxis at the IPO price of RM5.20. Go for it... slowly.

yumi said...

Hi Alex,

Yeah...now u saw me! Yes and thanks a lot.