Thursday, April 08, 2010

Market Outlook as at April 8, 2010

FBM-KLCI tested the upside of the expanding triangle at 1348 yesterday. It corrected quite sharply this morning, dropping to a low of 1334 as at 10.00am. On further weakness, FBM-KLCI may test the support of the 20-day SMA line at 1320. If this support failed, it may test the support of the 50-day SMA line at 1301.


Chart: FBM-KLCI's daily chart as at Apr 8, 2010_10.35am (Source: Quickcharts)

I have commented earlier in the preceding post that some funds managers could be taking profit on stocks which have risen substantially. This profit-taking activity may come & go and if there are sufficient demand for these stocks at lower prices, the selling should not culminate into a reversal of the present bull market. For now, we will have to wait out the on-going correction & try to buy stocks that had dropped back to more attractive prices.
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18 comments:

  1. AnonymousThursday, April 08, 2010 11:37:00 AM

    hi bro. please comment on hiaptek, today rise while market drop alots. off market transaction 16% stakes at RM1.60. can buy hiaptek?

    ReplyDelete
  2. Alex LuThursday, April 08, 2010 12:24:00 PM

    Hi Wong,

    From the technical perspective, Hiaptek is caught between the medium-term uptrend support at RM1.40 & the short-term downtrend line resistance at RM1.48. If it can break above RM1.48 (to be sure: RM1.50), it could be a trading BUY. If it eased back to RM1.40, it could also be a trading BUY- hoping for a rebound off the medium-term uptrend line.

    ReplyDelete
  3. David NgThursday, April 08, 2010 1:19:00 PM

    Hi Alex,

    What is your opinion on HaiO. It has been resting on the 4.40 for many days now. Thanks.

    ReplyDelete
  4. kyongThursday, April 08, 2010 2:01:00 PM

    Hi Bro Alex, Please comment on L & G, THE VOLUME HAS STARTED TO PICKUP FOR THE LAST TWO DAYS, IS IT A GOOD POTENTIAL Buy??
    Thanks

    From: Alex Yong

    ReplyDelete
  5. AnonymousThursday, April 08, 2010 2:14:00 PM

    hi bro. scomi coming again. may i know buying scomi or scomimr, which one is better? fundamental of company, which one is better?

    ReplyDelete
  6. LaymanThursday, April 08, 2010 3:02:00 PM

    Dear Alex,

    Bought genting average 6.70.... Should i hold further since price on the downtrend all this while.Hope you could throw some lights. thanks

    ReplyDelete
  7. cheerThursday, April 08, 2010 4:37:00 PM

    How many % u think this round correction ?

    ReplyDelete
  8. yumiThursday, April 08, 2010 11:51:00 PM

    Dear Alex

    Hi, l bought Scomi when it achieve a bullish breakout 0.43 as you mention in your blog..thanks for that!! Alex, is there any chances it will break RM1.00? Thanks once again**

    ReplyDelete
  9. solomonFriday, April 09, 2010 10:44:00 AM

    Good day Alex,

    Technically, how you view PUNCAK and TIMECOM?

    ReplyDelete
  10. Alex LuFriday, April 09, 2010 4:18:00 PM

    Hi David Ng,

    Sorry for the late comment. Haio's correction may be over with today's sharp rise.

    ReplyDelete
  11. Alex LuFriday, April 09, 2010 4:24:00 PM

    Hi yong,

    You can try L&G, which looks set for another upswing. It may test the recent high of RM0.63-64.If it can surpass this level, it may have a chance to test the high of above RM0.80 recorded in sep 2007.

    ReplyDelete
  12. Alex LuFriday, April 09, 2010 4:28:00 PM

    Hi wong,

    I have not looked at Scomimr. Scomi has a bullish technical breakout & has the promise of going higher. Scomimr does not excite me.

    ReplyDelete
  13. Alex LuFriday, April 09, 2010 4:38:00 PM

    Hi Layman,

    Genting has formed a downtrend, which means that its outlook would be negative. Nevertheless, its strong support- the Maginot Line- is at RM6.30. With that, you may want to see whether it can form a base at that level. On the other hand, if you want to exit this stock fairly quickly, then the exit level is at RM6.70-80.

    ReplyDelete
  14. Alex LuFriday, April 09, 2010 4:41:00 PM

    Hi cheer,

    My crystal ball is a bit cloudy. I must admit that I am more cautious than bullish these days.

    ReplyDelete
  15. Alex LuFriday, April 09, 2010 4:52:00 PM

    Hi yumi,

    I hope it can go to RM1.00. many of my clients are in it. But, I doubt it. For now, I am more comfortable with taking some profit at Scomi's immediate resistance is at RM0.53-55. The market is too fluid for even medium-term planning.

    ReplyDelete
  16. Alex LuFriday, April 09, 2010 5:13:00 PM

    Hi solomon,

    PUNCAK has broken above its medium-term downtrend. It has formed a base at RM2.60. This stock will rise only on news on a favorable deal to acquire its water assets. Even though there have been numerous research reports which put the fair price above RM3.50, the stock still languishes below RM3.00.

    TIMECOM has broken above its strong horizontal resistance at RM0.45. It may continue to inch up as a short-term uptrend has formed.

    ReplyDelete
  17. kyongFriday, April 09, 2010 5:50:00 PM

    Dear Alex, Thank you for your kind reply on my question on L & G, Your comment is excellent ! Thanks

    From : Alex Yong

    ReplyDelete
  18. UnknownSunday, April 11, 2010 1:09:00 PM

    Dear Alex:

    Is it true that quite a number of shares like Supermax, HSL, Etirech had staged cup and handle breakout and that Salcon and EPMB might be next in line?

    ReplyDelete