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.
at

3 comments:

  1. yumiTuesday, October 27, 2009 4:12:00 PM

    Alex,

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

    yumi

    ReplyDelete
  2. Alex LuThursday, October 29, 2009 9:43:00 AM

    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.

    ReplyDelete
  3. yumiThursday, October 29, 2009 10:33:00 AM

    Hi Alex,

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

    ReplyDelete