
Chart 1: FBMKLCI's weekly chart as at Sept 17, 2015_10.30am (Source: ShareInvestor.com)
The second good news is that USD-MYR has broken below the immediate accelerated uptrend line. See Chart 2 below.

Chart 2: USD-MYR's daily chart as at Sept 17, 2015_10.30am (Source: XE.com)
If we look the weekly chart (Chart 3), we will see that the USD-MYR is still in an uptrend. That means that our MYR is still weakening against the USD - except now the pace of the deterioration has decelerated. The MYR may strengthen slowly, with USD-MYR possibly dropping back to the 4.00 mark in the next 1-2 week. Further strengthening of the MYR could push the USD-MYR to 3.75 (in the next 3-6 months time).

Chart 3: USD-MYR's weekly chart as at Sept 17, 2015_10.30am (Source: XE.com)
Other good news includes CPO breaking above its medium-term downtrend line at RM2070.

Chart 4: CPO's daily chart as at Sept 17, 2015_10.30am (Source: ifs.marketcenter.com)
And, crude oil continues to recover, with WTIC having a strong rebound yesterday. WTIC's next resistance will be at USD50 & USD54.

Chart 5: WTIC's daily chart as at Sept 16, 2015 (Source: Stockcharts.com)
The improvement in crude oil & CPO will be positive for O&G stocks as well as plantation stocks. The tentative strengthening of our MYR will be a relief for importers (like auto players) while posing as a drag for exporters (like rubber glove producers). In light of these, you should examine your stocks and re-balance it accordingly. Good luck!
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