20051021 Technical Outlook JetFM
CI down on lower volume. After experiencing a heavy sell down on 19/10/2005, CI yesterday did not encounter much selling pressure, the stock index traded to an intraday low of 911.21 before settled at 911.69. For Friday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 914.15 & 916.61; 1st and 2nd support levels will be 910.22 & 908.75.
Chart wise: 6th consecutive down close; but critical support at 909 is still intact. The stock portfolio liquidation activities obviously have slowed down yesterday as "Funds" started to adopt a wait and see strategy. "Funds" may not want to be seen as leader to push down the CI at this juncture; but a trading action would be taken to realize some of the trading profits at some point of time. If that happens, CI would be under pressured to go lower. 909-level would be a key area to watch. CI must not break below 909 on close basis; otherwise, the general market would take that indication as a beginning of a bear downtrend market. So, to avoid such a possible major sell down in the market, certain "Funds" would certainly come in to support the CI from falling below this critical point as the stock index moves near to 909. On examination of the price actions, CI may look weak and even go lower to reach 905; but the stock index was likely to stay above 909 price area for the time being. Any deliberate attempt to "whack" down the CI was not expected to be successful at this juncture. With a close at 911.69, CI has registered a 6th consecutive down close in the past 6 trading days. This pattern may have reflected a weak underlying market; but one should not expect to see another immediate sharp decline. In an analysis of Fibonacci Retracement studies, CI was at 89.1% retracement of a move from 953.88 (4/8/3005) to 906.54 (2/9/2005).
Technical wise: MACD line cut down the signal line from above to emit a "sell" signal on 17/10/2005. MACD readings fell to -0.92 (20/10/2005) from -0.02 (19/10/2005) with signal line readings also dropped to 0.56 (20/10/2005) from 0.994 (19/10/2005), an indication of stock market into downtrend. On Directional Movement Index, -DMI continued to rise above the +DMI as market closed lower. On the reading scales, -DMI rose to 42 from 48 (19/10/2005) and +DMI was flat at 3, unchanged from 19/10/2006. ADX rose higher from 46 (19/10/2005) to 54 (20/10/2005), an indication of a better trending situation compared to 19/10/2005. As for Stochastics, %K line continued to stay below the %D line in the neutral zone. %K line moved further away from %D line, a sign of lower market. %K dropped to31.4 from 41.4 (19/10/2005) with %D also fell from 48.4 (19/10/2005) to 39.9 (20/10/2005).
Our stock recommendation for today is:
Yikon (Trading Buy) at RM3.20 with a stop loss at RM2.98
Chart wise: 6th consecutive down close; but critical support at 909 is still intact. The stock portfolio liquidation activities obviously have slowed down yesterday as "Funds" started to adopt a wait and see strategy. "Funds" may not want to be seen as leader to push down the CI at this juncture; but a trading action would be taken to realize some of the trading profits at some point of time. If that happens, CI would be under pressured to go lower. 909-level would be a key area to watch. CI must not break below 909 on close basis; otherwise, the general market would take that indication as a beginning of a bear downtrend market. So, to avoid such a possible major sell down in the market, certain "Funds" would certainly come in to support the CI from falling below this critical point as the stock index moves near to 909. On examination of the price actions, CI may look weak and even go lower to reach 905; but the stock index was likely to stay above 909 price area for the time being. Any deliberate attempt to "whack" down the CI was not expected to be successful at this juncture. With a close at 911.69, CI has registered a 6th consecutive down close in the past 6 trading days. This pattern may have reflected a weak underlying market; but one should not expect to see another immediate sharp decline. In an analysis of Fibonacci Retracement studies, CI was at 89.1% retracement of a move from 953.88 (4/8/3005) to 906.54 (2/9/2005).
Technical wise: MACD line cut down the signal line from above to emit a "sell" signal on 17/10/2005. MACD readings fell to -0.92 (20/10/2005) from -0.02 (19/10/2005) with signal line readings also dropped to 0.56 (20/10/2005) from 0.994 (19/10/2005), an indication of stock market into downtrend. On Directional Movement Index, -DMI continued to rise above the +DMI as market closed lower. On the reading scales, -DMI rose to 42 from 48 (19/10/2005) and +DMI was flat at 3, unchanged from 19/10/2006. ADX rose higher from 46 (19/10/2005) to 54 (20/10/2005), an indication of a better trending situation compared to 19/10/2005. As for Stochastics, %K line continued to stay below the %D line in the neutral zone. %K line moved further away from %D line, a sign of lower market. %K dropped to31.4 from 41.4 (19/10/2005) with %D also fell from 48.4 (19/10/2005) to 39.9 (20/10/2005).
Our stock recommendation for today is:
Yikon (Trading Buy) at RM3.20 with a stop loss at RM2.98
posted by emacro @ 9:36 PM
0 comments
0 Comments:
Post a Comment
<< Home