Construction sector poised to go higher (AMENDED)

My post entitled "Construction sector poised to go higher" dated January 11, 2013 has been withdrawn due to an error in one of charts used for the study. The chart which I intended to use was Construction index chart but instead I had used the Consumer index chart.

While I agreed with the positive outlook for the construction sector taken by Maybank IB Research (as  reported in the Star, go here), the Construction index has not achieved a bullish breakout from its downtrend line. From Chart 1, we can see that Construction index is still in an intermediate downtrend line.


Chart 1: Construction's weekly chart as at Jan 16, 2013 (Source: Quickcharts)

Of Maybank IB Research's 2 top picks - WCT and Gamuda - we can see that WCT is moving sideway and needs to break above the strong horizontal resistance at RM2.40. On the other hand, Gamuda has just broken above its horizontal resistance at RM3.80 and could be poised to rally higher.


Chart 2: WCT's weekly chart as at Jan 16, 2013 (Source: Quickcharts)


Chart 3: Gamuda's weekly chart as at Jan 16, 2013 (Source: Quickcharts)

While I agreed with the positive outlook for the construction sector taken by Maybank IB Research (as  reported in the Star, go here), the Construction index has not achieved a bullish breakout from its downtrend line. Of Maybank IB Research's 2 top picks - WCT and Gamuda - we can see that Gamuda may be a trading BUY as it has broken above its horizontal resistance at RM3.80. The other stock to look at is Mudajya which I had posted on earlier.

The error in the earlier post is much regretted.

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, WCT, Gamuda & Mudajya.