Thursday, January 26, 2012

Market Outlook as at January 26, 2012

Our market has been recovering cautiously after the selldown in July-September. This recovery is reflected in the medium-term uptrend line, SS. The recovery rally had encountered strong resistance which triggered sharp pullbacks. These pullbacks can be fitted into a 3-fan downtrend line, with the market currently testing the third fan-line (R-R3). With the negative crossover noted in the MACD indicator, there is a good chance that the rally will not be able to surpass the resistance at 1525. This could set the stage for a correction in the market. FBMKLCI may pullback to the medium-term uptrend line support at 1510 or the psychological 1500 level. A break below the 1500 level could lead to a longer consolidation in the market.

Based on the above, you should exercise careful discretion in your trading.


Chart: FBMKLCI's daily chart as at January 25, 2012 (Source: Tradesignum)
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5 comments:

  1. luckystock2Thursday, January 26, 2012 9:31:00 AM

    Hi Alex,
    Although our klse index and many of the 2nd and 3rd liners has been rising , but actually some of the bluechips like MHB , CIMB and Axiata are quite weak recently. What do you think about it?
    Tx!

    ReplyDelete
  2. Michael LThursday, January 26, 2012 12:52:00 PM

    Hi Alex,

    Happy Chinese New Year. Would like to check any potential for HWGB counter? Thank you.

    ReplyDelete
  3. Alex LuThursday, January 26, 2012 1:31:00 PM

    Hi Michael L


    HWGB is not a profitable company. It is a penny stock that can rise only if there is a play. It was played up in October 2011 & January 2012. I think it is likely to drift for a while before the next play starts, if ever.

    ReplyDelete
  4. Alex LuThursday, January 26, 2012 1:33:00 PM

    Hi luckystock2

    There are some selective rotational plays among the 2nd & 3rd liners. As you have noted, blue chip stocks are mostly sidelined, unless they were sold down earlier.

    ReplyDelete
  5. kelvin888Thursday, January 26, 2012 6:02:00 PM

    Hi Alex,

    Any comment on Manulife Bhd ?

    Is it worth to accumulate at the current price for long term investment now ?

    Thank you.

    Kelvin

    ReplyDelete