20051006 Technical Outlook JetFM
CI attempted to test 930-level; but it only reached an intraday high of 928.21 before closed at 924.76. Though there is always a possibility of CI to make another attempt to go above 930 again; however, with a lower close compared to previous day, plus a heavier n trading volume in yesterday market, we may not see CI making the same attempt to break 930 today. For Wednesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.3 & 929.83; 1st and 2nd support levels will be 923.03 & 921.29.
Chart wise: CI has been trying to penetrate 930-level in at least 4 attempts for the past 6 days; but they were unsuccessful. As a result, a small congestion was formed. An analysis of the price behavior revealed that there is a 50/50 chance for the CI to break the 930 resistance; however, as time passes by, traders who have been waiting for an upside breakout to add in extra positions in their stock portfolio may begin to lose their patience and turn around to liquidate their portfolio. In term of Fibonacci Retracement analysis, CI is currently near 38.2% of a move from 953.88 (4/8/2005) to 911.66 (2/9/2005). Should CI break above 930, the next immediate resistance will be 935, which is a 50% retracement. To see a new upward direction in the stock market, not only CI must break above 930, it must also close above 930.
Technical wise: MACD line was seen flattening out in the positive zone and became closer to the signal line, this showed that the up move is losing its steams. That is something that "bullish" traders would not want to see as chances of MACD line to cut down the signal line to trigger a sell would become greater. On Directional Movement Index, +DMI was trending down south, indicated a weakening up move. The +DMI dropped from 19 (3/10/2005) to 18 (4/10/2005) with -DMI stayed unchanged at 10. A low ADX showed that CI was in a non-trending situation. As for Stochastics, %K line remained below %D line with %K line has slipped into neutral zone. Both lines are trending downward, indicated a correction was underway.
Our stock recommendation for today is:
Ramunia Hldgs (Trading Buy) at RM1.21 with a stop loss at RM1.05
Chart wise: CI has been trying to penetrate 930-level in at least 4 attempts for the past 6 days; but they were unsuccessful. As a result, a small congestion was formed. An analysis of the price behavior revealed that there is a 50/50 chance for the CI to break the 930 resistance; however, as time passes by, traders who have been waiting for an upside breakout to add in extra positions in their stock portfolio may begin to lose their patience and turn around to liquidate their portfolio. In term of Fibonacci Retracement analysis, CI is currently near 38.2% of a move from 953.88 (4/8/2005) to 911.66 (2/9/2005). Should CI break above 930, the next immediate resistance will be 935, which is a 50% retracement. To see a new upward direction in the stock market, not only CI must break above 930, it must also close above 930.
Technical wise: MACD line was seen flattening out in the positive zone and became closer to the signal line, this showed that the up move is losing its steams. That is something that "bullish" traders would not want to see as chances of MACD line to cut down the signal line to trigger a sell would become greater. On Directional Movement Index, +DMI was trending down south, indicated a weakening up move. The +DMI dropped from 19 (3/10/2005) to 18 (4/10/2005) with -DMI stayed unchanged at 10. A low ADX showed that CI was in a non-trending situation. As for Stochastics, %K line remained below %D line with %K line has slipped into neutral zone. Both lines are trending downward, indicated a correction was underway.
Our stock recommendation for today is:
Ramunia Hldgs (Trading Buy) at RM1.21 with a stop loss at RM1.05
posted by emacro @ 7:59 PM
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