The sell-off in Genting has even affected the performance of Genm. That stock broke above its intermediate downtrend line last week and in the past 3 days, Genm has almost surrendered all its gain. It will soon test its long-term uptrend line at RM3.35.
Chart 1: Genting's weekly chart as at Sep 21, 2012_4.00pm (Source: Quickcharts)
Chart 2: Genm's weekly chart as at Sep 21, 2012_4.00pm (Source: Quickcharts)
In fact, if you look through the names of the losers, they are the who's who of our exchange. These heavyweights, which had featured prominently among the gainers for the past few months, are now under selling pressure. I fear that we are about to see a price top in the market. A price top follows a momentum top in the market. After a price top, the market is ripe for a prolonged decline.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Genting & Genm.
Will it because of expectation on coming budget 2013, raising tax rate in gaming sector?
ReplyDeleteAnd the selling of these `quality' counters counters today. Maybe I should register a derivatives account and start trading in the BSKL index. That will be one way to benefit should it go down further.
ReplyDeleteWith these index-linked counters going down, I think the focus will turn to penny stocks. There are many people who simply must trade regardless of market condition, and they'll shoot anything that moves.
Hi Ivan
ReplyDeleteIt is possible. I expect some sectors to be hit with taxes in the upcoming budget. this budget will be friendly to the consumers-cum-voters but not so friendly to the corporate tax payers.
Good day,
ReplyDeletePls correct me if I am wrong. Genting chart seem +ve sign, despite buying volume came in, MACD, RSI seem more positive sign.
Please comment(if any). TQ
Hi Ivan
ReplyDeleteThe long-term picture for Genting is still negative. The medium-term outlook could be mildly positive if it can go above RM9.10.