20051108 Technical Outlook JetFM
Technical Readings : Following the strong close of 913.92 on 2/11/2005, CI opened at 914.70, 0.78 point higher than previous close, stock index traded to an intraday high of 915.87 as traders bought in some good bargain hunting stocks; however, Funds saw this increase as an opportunity to sell to lock in their gains, CI as a result came under pressure to trade lower to 907.8 before settled at 911.53 on last minute buying of blue chip stock(s).
For Tuesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 915.6 & 919.8; 1st and 2nd support levels will be 907.6 & 903.6.
Chart wise :
... Profit taking pushed CI Lower ..
After registered 3 consecutive up closes, CI was under some profit taking activities to close lower as stock index failed to go higher than 915.87 and the stock index was particularly weakened when CI breached below the 914.7 opening level, Funds did not want to take any chances for not selling, they liquidated a portion of their stock portfolio(s) to lock in some of the profit(s).
915 remained as a crucial level to watch. Even the closing level failed to create a small key reversal bar, CI was still expected to trade lower in next few days as the buying up from 907.8 level was not fully tested along the way to 911.53. Furthermore, an increase in trading volume on 7/11/2005 compared to 2/11/2005 has also added the weight(s) of seeing a lower market.
While CI was expected to face with some hurdle to stage higher after what had happened yesterday, it would certainly provide a stronger indication of a downward move if CI were to settle below 905, traders would then be better convinced of a bearish scenario.
An analysis of the market action(s) revealed that selling pressure was much stronger than buying power. Funds were simply only interested in taking profit(s) after CI made a 10 13 point(s) gain over the last 4 days.
Technical wise : MACD line cut down the signal line from above to emit a sell signal on 17/10/2005. MACD readings rose to 3.66 (7/11/2005) from 3.92 (2/11/2005) with signal line readings weakened to 3.49 (7/11/2005) from 3.42 (2/11/2005), an indication of a slow down of a downtrend market.
On Directional Movement Index, +DMI turned downward after the cross over on 31/10/2005 to indicate a slower up move. On the reading scales, -DMI was up to 22 from 17 on 2/11/2005 and +DMI fell to 24 from 33 on 2/11/2006. ADX fell lower from 51 (2/11/2005) to 42 (7/11/2005), an indication of a weakened trending situation compared to 2/11/2005.
As for Stochastics, %K line cut above the %D line in the oversold zone to give a buy signal on 31/10/2005. %K rose to 17.3 from 14.4 (2/11/2005) with %D also went up from 12.4 (2/11/2005) to 14.8 (7/11/2005).
Our stock recommendation(s) for today is(are) :
Unisem (Trading Buy) at RM1.42 with a stop loss at RM1.36.
For Tuesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 915.6 & 919.8; 1st and 2nd support levels will be 907.6 & 903.6.
Chart wise :
... Profit taking pushed CI Lower ..
After registered 3 consecutive up closes, CI was under some profit taking activities to close lower as stock index failed to go higher than 915.87 and the stock index was particularly weakened when CI breached below the 914.7 opening level, Funds did not want to take any chances for not selling, they liquidated a portion of their stock portfolio(s) to lock in some of the profit(s).
915 remained as a crucial level to watch. Even the closing level failed to create a small key reversal bar, CI was still expected to trade lower in next few days as the buying up from 907.8 level was not fully tested along the way to 911.53. Furthermore, an increase in trading volume on 7/11/2005 compared to 2/11/2005 has also added the weight(s) of seeing a lower market.
While CI was expected to face with some hurdle to stage higher after what had happened yesterday, it would certainly provide a stronger indication of a downward move if CI were to settle below 905, traders would then be better convinced of a bearish scenario.
An analysis of the market action(s) revealed that selling pressure was much stronger than buying power. Funds were simply only interested in taking profit(s) after CI made a 10 13 point(s) gain over the last 4 days.
Technical wise : MACD line cut down the signal line from above to emit a sell signal on 17/10/2005. MACD readings rose to 3.66 (7/11/2005) from 3.92 (2/11/2005) with signal line readings weakened to 3.49 (7/11/2005) from 3.42 (2/11/2005), an indication of a slow down of a downtrend market.
On Directional Movement Index, +DMI turned downward after the cross over on 31/10/2005 to indicate a slower up move. On the reading scales, -DMI was up to 22 from 17 on 2/11/2005 and +DMI fell to 24 from 33 on 2/11/2006. ADX fell lower from 51 (2/11/2005) to 42 (7/11/2005), an indication of a weakened trending situation compared to 2/11/2005.
As for Stochastics, %K line cut above the %D line in the oversold zone to give a buy signal on 31/10/2005. %K rose to 17.3 from 14.4 (2/11/2005) with %D also went up from 12.4 (2/11/2005) to 14.8 (7/11/2005).
Our stock recommendation(s) for today is(are) :
Unisem (Trading Buy) at RM1.42 with a stop loss at RM1.36.
posted by emacro @ 6:26 PM
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