20051011 Technical Outlook JetFM

Despite several unsuccessful attempts to break above 930-level recently, CI went above 930; but the stock market failed to carry the CI far into higher ground as it reached an intraday high of 930.7 before profit taking activities pushed the cash index lower to close at 928. Obviously, CI was trying to break from this sideway market as market has been fluctuating in a tight range for so many days. Trading activities in the stock market were unexcited at all, traders were all waiting for a "trigger" to get involved. For Tuesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 930.61 & 933.23; 1st and 2nd support levels will be 925.47 & 922.95.
 
Chart wise: As CI was just approaching to break the short term upward sloping trend line, some buying activities rolled in to push the stock index up, the volume of shares traded yesterday was at 450.9 million, higher than 390.7 million recorded on 7/10/2005. There were market attempts to take CI to higher level; however, an initial analysis of yesterday price action and volume revealed that buying power was stronger than selling pressures; thus, there would be another attempt to carry the CI above 930 again today.
 
Technical wise: MACD line rose to 1.49 (10/10/2005) from 1.35 (7/10/2005) as market closed higher; that suggested a return of some buying interest in the index linked stock. On Directional Movement Index, +DMI was at 20, up from 10 (7/10/2006); but -DMI also came down lower to 5 (10/10/2005) from 7 (7/10/2005). ADX inched higher from 35 (7/10/2005) to 40 (10/10/2005). As for Stochastics, %K line was trading below %D line with %K line gapped narrower to %D line, indicated a stronger upward move.
 
Our stock recommendations for today are:
Sunway Hldgs Incorporated (Trading Buy) at 54.5 sen with a stop loss at 48.5 sen
CB Industrial Product (Trading Buy) at RM1.43 with a stop loss at RM1.37