2005013 Technical Outlook JetFM
With a "die hard" attitude, CI breached above 930-resistance again on another attempt to reach an intraday high of 931.66; but the buying interest failed to lift the market higher. CI eventually settled at 928.49 on final bell. CI may have gone above 930-level in 3 days consecutively; however, the common pattern in the last 3 trading days was the inability of CI to close above 930. That was not a good sign for a market attempted so hard to go higher; thus, one must start to exercise cautions. Of course, there would still be buying and selling across the market; but, who were the ones that bought and who were the ones that sold? An initial analysis of the market actions revealed that strong hands were distributing to the weak hands. For Thursday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 931.28 & 934.07. 1st and 2nd support levels will be 926.08 & 923.67.
Chart wise: As long as 930 not penetrated decisively on the close basis, it would continue to be a critical reference point. Yesterday, CI traded at 926.75 on opening bell, 1.68 point lower than the previous day's close of 928.43. It simply indicated that traders were not willing to pay up the market, as these traders did not see the "urgency" to chase the stocks. On examination of the volume and price, 412.63 million of shares were traded compared to 389.52 million on 10/10/2005. A higher trading volume with a close at 928.49 suggested the increased in buying interest was not strong.
Technical wise: MACD line rose to 1.72 (12/10/2005) from 1.62 (11/10/2005). But the rate of increasing was slower. The signal line reading also went up to 1.36 (12/10/2005) from 1.25 (11/10/2005). On Directional Movement Index, +DMI was at 14, down from 18 (11/10/2006); but -DMI went up to 8 from 5 (11/10/2005). That indicated a sign of stronger down move. ADX inched lower from 43 (11/10/2005) to 40 (12/10/2005). As for Stochastics, %K line was getting a little further away from %D line, a positive sign of seeing a lower stock market. %K went down to 69.6 from 72.81 (11/10/2005); while %D fell from 72.83 to 72.14 (11/10/2005).
Our stock recommendation for today is:
Kian Joo Factory (Trading Buy) at RM3.10 with a stop loss at RM3.00
Chart wise: As long as 930 not penetrated decisively on the close basis, it would continue to be a critical reference point. Yesterday, CI traded at 926.75 on opening bell, 1.68 point lower than the previous day's close of 928.43. It simply indicated that traders were not willing to pay up the market, as these traders did not see the "urgency" to chase the stocks. On examination of the volume and price, 412.63 million of shares were traded compared to 389.52 million on 10/10/2005. A higher trading volume with a close at 928.49 suggested the increased in buying interest was not strong.
Technical wise: MACD line rose to 1.72 (12/10/2005) from 1.62 (11/10/2005). But the rate of increasing was slower. The signal line reading also went up to 1.36 (12/10/2005) from 1.25 (11/10/2005). On Directional Movement Index, +DMI was at 14, down from 18 (11/10/2006); but -DMI went up to 8 from 5 (11/10/2005). That indicated a sign of stronger down move. ADX inched lower from 43 (11/10/2005) to 40 (12/10/2005). As for Stochastics, %K line was getting a little further away from %D line, a positive sign of seeing a lower stock market. %K went down to 69.6 from 72.81 (11/10/2005); while %D fell from 72.83 to 72.14 (11/10/2005).
Our stock recommendation for today is:
Kian Joo Factory (Trading Buy) at RM3.10 with a stop loss at RM3.00
posted by emacro @ 12:45 AM
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