Friday, March 04, 2011

Blue chips rebounding

This morning, FBM-KLCI rebounded sharply. It broke above the short-term downtrend line at 1505. See Chart 1 below. While the rebound has spread out to the broader market, the recovery amongst the 2nd & 3rd liners are very timid. FBM-Emas has not surpassed its short-term downtrend. See Chart 2. Due to the non-confirmation in these 2 indices, this recovery is still a work-in-progress.


Chart 1: FBM-KLCI's 60-min chart as at Mar 4, 2011_9.25am (Source: Quickcharts)



Chart 2: FBM-Emas's 60-min chart as at Mar 4, 2011_9.25am (Source: Quickcharts)
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5 comments:

  1. UnknownFriday, March 04, 2011 3:59:00 PM

    hi alex,
    could u pls advise the reason parkson share price dropping recently?
    thanks!

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  2. leslieroycarterSunday, March 06, 2011 5:16:00 PM

    Dear Alex:
    Market is still jittery on the outcome of civil unrests in many of oil producing countries in Northern Africa , Libya , tunisia , Egypt etc. Oil prices had surpassed its all time high . Given the best job data in USA , I think many had cashed out instead of staying longer in the markets as the uncertainties and fears are still prevailed and real.

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  3. IvanSunday, March 06, 2011 7:48:00 PM

    Hi Alex,

    With the middle-east unstable, wonder will it be a challenge for world index to rebound?
    Malaysia might face some challenge to rebound IF global index stills struggling .

    By the way, any idea on GENTING, GENM & GENS?
    Thanks

    ReplyDelete
  4. Alex LuThursday, March 10, 2011 9:48:00 AM

    Hi Ester

    Parkson dropped- like everyone else- because the whole market was in a bearish mood then. Over the past 2-3 days, the bearish mood has lifted. The price of Parkson share will likely to follow suit. The stock has been moving within a gradual upward channel, with support at RM5.20 & resistance at RM6.20.

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  5. Alex LuThursday, March 10, 2011 10:28:00 AM

    Hi Ivan

    GENTING & GENS seems to have formed a short-term downtrend. Genting's horizontal support & resistance are at RM10.00 & RM10.60. GenS has also formed a wedge, with support & resistance are at S$1.85-1.90 & S$2.10-2.12.

    These 2 stocks may eventually perform like GenM, which entered into a short-term downtrend earlier (in Dec 2010). This downtrend has since morphed into a pennant, with support & resistance at RM3.20 & RM3.65.

    If you are looking to get into these stocks, you should aim to buy near the support. As Genting and GenS have formed downtrend, you should be more cautious in your buying. GenM is relatively safer as the pattern is a neutral pattern. Good luck.

    ReplyDelete