Technical Commentary 31-Dec-09 Thurs

Today KLCI manages to push up last hour and closed at 1272.78 (+1.66pts, +0.1%) with 388 up counters and 266 down counters. The KLCI considered as consolidate but well supported by 10 and 50 days MA. RSI stays at 59.25, STC %K up slightly to 87, MOM still above zero. The MACD histogram still formed round bottom and the MACD line crossed above the triggering line but they are very close to each other. The traded volume does increased marginally by 2.7% to 603 mil but still below the average traded volume of about 823mil. The immediate support level is 1266 to 1264 which is equal to 10 days and 50 days MA respectively. With mixed indicators, the market in the side way to slightly up trend biased.

The KLCI was sideway most of the time from the morning session today but it started to dip at 330pm until 410pm. The KLCI down 5 points at 410pm and started a V-turn at 4.15pm with volume increased. It was closed at 1272.78 for the last day of year 2009. Please refer to the 5 mins chart of KLCL.

I will provide some counters to watch during the weekend. Please remember to revisit this Blog.

Technical Commentary 30-Dec-09 (Wed):

Today KLCI closed at 1271.12 (-4.1pts, -0.32%) with 383 up counters and 251 down counters. The Bollinger band contracted 2% but still stays above middle band (1266). RSI stays at 54, STC %K retract to 78, MOM still above zero. The MACD histogram still formed round bottom and crossed above triggering line but flatten slightly. The traded volume does increased marginally by 1.8% to 58s.476mil but still below the average traded volume of about 823mil. The immediate support level is Bollinger middle band (1266 today). With mixed indicators, the market seems enter correction but the uptrend still intact.

In the weekly chart analysis, KLCI closed at 1271 today with the Bollinger band contracted 2% but the immediate support level still at Bollinger middle band at 1266. This indicates that the market still in consolidation stage. We are still looking forward for KLCI to close above 1274 with expended Bollinger band on the last trading day of 2009. Otherwise, we shall review the analysis once KLCI closed below 1266.

WATCH LIST:

INSAS (3379):
Insas Berhad is a Malaysia-based company engaged in investment holding and provision of management services. The Company and its subsidiaries are engaged in trading of alcoholic and non-alcoholic beverages; investment holding, investment trading and investment and rental of properties; production of wireless microwave telecommunication products, wireless broadcast card and to provide electronic manufacturing services; construction, landscaping renovation and other related works, and credit, leasing and other related financing activities. The Company operates under five segments: financial services and credit leasing; property investment and development; investment holding and trading; retail trading and car rental, and information technology and related services. Its subsidiaries include Cellar-One Sdn Bhd, Contibina Sdn Bhd, Dellmax Worldwide Sdn Bhd, Desa Juara Sdn Bhd and Inari Technology Sdn Bhd. On July 1, 2008, the Company sold Gleneagles Hospital (Kuala Lumpur) Sdn Bhd.

This counter broke up 0.590 resistant and now retesting the 0.590 as support line. Should 0.590 not supported, the secondary support is Bollinger middle band at 0.570 now. We shall review again once the Bollinger band is not supported. Also imply that 0.570 should be the cut lost level.

E&O (3417): After 3 days of consolidation, this counter finally break out of the triangle tip with Bollinger band expended 43% upward and closed at 1.05. The near term resistances are 1.09/1.16/1.23.

The Wimax group kickoffs the rally after consolidating for almost two months. They are GHLSYS, GPACKET & -WA, REDTONE, YTLE.

LBS & -WA’s uptrend still intact. Uptrend may stop once it closed red that day and may lead to correction.

Both Adventa & Supermx still steadily advancing, the uptrend still intact;

Genting Singapore Call warrant

If you still remember my post on Genting Singapore 2 days ago, I mentioned if it breaks out 1.21, the price will go higher. Since many of you cannot buy Genting singapore, but you can buy Gens-C1 or Gens-C2 in Bursa Malaysia. Since buying the call warrant is more risky than the mother share, you must always check the trend of the mother price.

Genting Singapore broke out the resistance 1.21 yesterday in Singapore. The 2 babies also follow the mother in Bursa Malaysia. Big up for 2 days. Please refer to the chart below.

Technical Commentary 29-Dec-09 (Tuesday):

Today KLCI closed at 1275.22 (+2.49, +0.2%) with 383 up counters and 251 down counters. The Bollinger band further open 14% with KLCI stays above middle band. RSI stays at 54, STC %K touches 100, MOM above zero. The MACD histogram formed round bottom and crossed over the triggering line. The traded volume increased by 25% to 575.842mil but still below the average traded volume of about 833mil. The market participation does improved further but still needed more to support up trending.The near term resistance is 1280 then 1288 while the immediate support level is Bollinger middle band (1266 today). Most indicators are positively biased to support the uptrend thus far.

In the weekly chart analysis, so long as the KLCI could stays above 1274 for this week, the uptrend momentum could dwell probably toward next weeks to come, of course must be supported with more trading volume consequently. Though, the immediate supportive level still at 1266, otherwise, we shall review again then.









Review Counter:

LBS & LBS-WA: Since our last review as watched list on 9-Dec, both these counters have appreciated by 25% and 54% respectively within 13 trading days. Especially the last 4 days that make a hefty hike coincide with the KLCI inheriting the breakup recently. Again, this is purely technical chart analysis…..









OF COURSE, BRAVO…BRAVO… to the glove stocks, SUPERMX & ADVENTA, that hike superbly. See review below….

Re-Visit Supermx

The market's volume increase by 25% today. Despite the volume is still consider low however there are 383 counters up vs 251 counters down. JK will give you more details on technical commentary on KLCI tonite.

Our counters mostly still continue their uptrend. These counters include:
Supermx, Haio, Mudajya, Adventa, Sapcres, Petra, LBS, LBS-WA, IJMLand, KNM,......

Let's review Supermx. I know many of you scare of new high and miss the boat but do you know the institutional investors like EPF, Morgan stanley, Citigroup, OSK, PBB UT fund managers.....etc, are buying these type of counters before it really reach their fair price. I already alerted our investors in email and also on this Blog a few times. Since the out break of the H1N1, the demand of the rubber gloves are more than they can supply. So the glove companies will increase their price, expand their plants and capacity to produce more gloves. We expect the Y-Y earning grow at least increase by 20% in 2010 and 2011. The risk that will affect the glove companies is the materials cost. So this fundamental analysis. You can refer to the analyst report for more details.

I am a technical guy and so I don't buy and hold for 3 years. I will analyse the chart and pick the right entry time and the right profit taking time. The chart below show my entry and my exit timing. As long as the price form a higher high and higher low, it is still bullish.
1st trade earn about 40%
2nd trade earn about 40%
3rd trade earn about ??% (20% as today before chargers)
Please take a look.

Technical Commentary 28-Dec-09 (Monday):

Today KLCI closed at 1272.73 (+8.79 +0.7%) with 396 up counters and 215 down counters. The Bollinger band open 5% with KLCI stays above middle band of 1265 as mentioned last week. RSI stands at 50, STC %K touches 100, MOM above zero. The MACD histogram formed round bottom and almost crossed over the triggering line. The traded volume increased by 19% to 459.031mil but still below the average traded volume of about 843mil. The market participation does improved by still needed another fold for more supportive up trending.

The near term resistances are 1280 then 1288 while the nearest support level is Bollinger middle band (1265 today). Most indicators are positively biased to support the uptrend thus far.









Watched List:

Petra up additional +0.07 (+4.9%) to 1.48. Uptrend still intact;

Etitech still consolidating within the wedging triangle. The nearest resistance is 0.445/0.480. We are monitoring the bullish divergence with potential break up of wedge triangle (around 0.480);

IJMLAND-WA gradually increase toward 1.40 level with steady traded volume. uptrend still intact;

Both Supermx and Adventa hike significantly today, up 0.30 and 0.17 respectively. Uptrend still intact;

















New Stock to Watch:

E&O(3417): This counter closed at 1.01 but still supported by the bullish divergence, MA200 and Bollinger middle band of 0.995. Decreased in traded volume may lead to short term consolidation toward the triangle tip. Since we are observing the bullish divergence, we shall monitor for the possible breakout of the triangle. The near term resistances are 1.03/1.09/1.16. Should unexpected southbound happen, plan the short term cut loss below 0.985 (support trend line) . See attached chart.

Genting Singapore

Somebody ask me what is the trend of Genting Singapore. Well, Gen Sin after broke out from the trend line on 16/12/09, it goes as high as 1.19 before consolidates around 1.17. The volume started to decrease and the price well supported above 1.16. The trend is side way right now until the next break up or break down. If it breaks out 1.21, the price will go higher. However if it breaks down 1.13, it should find a strong support at Fibo 61.8% which is equal to the stock price 1.09. Please refer to the chart below.

If you wish to know any stock in USA(NYSE/Nasdaq/Amex), Singapore or Hong Kong, please email to me. I will public here as well.

Petra formed a Bullish Divergence Signal

Petra after broke down from the support level 2.48, the price never look back until today a bullish confirmation after its price up 10%. The chart and the MACD form a bullish divergence signal, which is a very reliable bullish reversal signal. Unless some bad news happens on this stock or the whole market next week otherwise the up trend should continue for another 1 or 2 days. The STC just passes 30%, this means the up trend still an early bird. The price had broke out the BBMB, good sign for the trend to continue. The BB still contracted 10%, this means that the stock price has not totally get out from the consolidation yet. The resistance is 1.41, 1.53 & 1.63 and the support is 1.27 and 1.20. If you had acquired this stock today or next Mon, you need to protect you capital by setting a cut loss point. Please refer to the chart for self-explanation.



Take Note: I will be going outstation for a few days next week. My master JK will continue to provide you the best technical commentary. Merry Christmas and Happy New Year 2010

Technical Commentary on 23-Dec-09 (WED) Closing:

Daily KLCI closed marginally positive at 1260.53 (+0.11, +0.01%). But the market traded volume (410.514mil) further decreased by 8.1%. (Counters up=278, down=287) Most investors still choose to stay sideline.

KLCI Daily Technical Analysis:
MACD is resting at the zero line, RSI stays at 44, STC %K stays at 28. KLCI still stays below the daily Bollinger Middle band of 1262. Most technical indicators still show negatives.

KLCI Weekly Technical Analysis:
MACD has formed round top since early Oct-09. RSI has gradually sliding from 85 to 65. STC has reduced from 100 to 50. MOM comes down to almost touching zero line. KLCI still stays below weekly Bollinger middle band of 1265 with the Bollinger band closing at -32%. The market is waiting for the next direction upon Bollinger band re-opening. In order for the market to recover up trending, the KLCI has to resume at least above Bollinger Middle band as shown on the chart attached below. Next one or two weeks is very critical for the next market direction upon Bollinger Band re-opening. UP or DOWN? Let’s stay tune…. and be alert….

Counter to Watch:

Etitech (0118):

As shown on the technical chart, this counter may have a prospect of bullish divergence. It will be more confirming should the price advance over 0.455 and remains above.
The near term resistances are 0.470/0.490. Should the price could break up 0.490 then the next possible resistance are 0.520/0.570, otherwise correction may take place after hitting 0.490.
However should investors take position, please be prepared the capital preservation plan by cutting lost below 0.420. By then, the bullish divergence stand may have to be voided and reviewed again.

Attached below is another counter “Keyasic” with recent bullish divergence for your reference.

Consider IJMLand and -WA

IJMLand has a big projects at Penang water front near the Penang Bridge entry. You can consider to buy the stock or its property for mid to longer term investment. Good time to collect this stock when the market is down. Target price is RM3.60.
IJMLAND,5215，(主板產業組)檳城產業發展計劃銷售開出紅盤，分析員將之歸功於產品區隔政策奏效，相信將可為未來產業發展計劃成功推介鋪路，盈利前景也料獲得加持，上調未來兩個財政年盈利預測。

Technical Commentary 22/12

KLCI closed slightly positive but the market volume further decrease by 6.7%. This indicates more investors choose to sideline and it doesn't look good for the market in short term.

BRDB closed up another 7% and it is time to take profit tomorrow. Where should we take profit? Please refer to the explanation on the chart below for better a understanding.
Correction: The fast STC reached 100% not 90% as written on the chart. This signal an over bought and lightly to correct tomorrow.



Existing stock to consider - Sapcres (8575)
Listing Date: 15.10.1992
Market: MAIN
Sector: TRADING/SERVICES
Par Value: 0.20
Major Industry: Diversified
Sub Industry: General Diversified
SIC Industry Code: 1382 - Oil And Gas Exploration Services
Last qtr net profit: RM52,362,000.00.
Last qtr EPS: 4.14 sens, increase 52% Q-Q.
Growth rate: Increase 38% Y-Y
ROE: 13.92
Present PER: 18.56
Investment Objective: Mid Term

Formerly known as:
CREST PETROLEUM BERHAD

SAPURACREST PETROLEUM BERHAD is engaged in investment holding and provision of management services to its subsidiaries. It has four segments: installation of pipelines and facilities, which involves the installation of offshore platforms and marine pipelines; offshore oil and gas drilling, which involves drilling of offshore oilwells and chartering of rigs involved in drilling offshore oilwells; marine services, which involves provision of offshore geotechnical and geophysical services to the oil and gas industry, development of marine technology and marine chartering, specializing on remotely operated vehicle, and operations and maintenance, which involves repairs and refurbishment of industrial gas turbines, supply, installation, commissioning and maintenance of point-of-sale systems for petrol stations and asset management services for offshore installations. In July 2008, the Company acquired two shelf private limited companies, Aurabayu Sdn Bhd and Geomark Sdn Bhd.

Today Sapcres broke out 2.34 and sustains above it to close at 2.37. By looking at the chart, it is on its way of EW5 and potentially the price will hit at the upper trend line at the tip of the EW5. Let's look at the indicators below:
Volume: Not obvious but gradually increase
Bollinger Band: Expanded 17%, price above BBMB
Moving Average: Price above 10 and 20 days MA
MACD: MACD line crossing up. Histogram form a rounded bottom
RSI: Above 60%
STC: Above 70%
Support 2.33 and the temporary resistance is 2.37
Cut loss: Below 2.25 or -5% to -8% of your entry price
Please refer to the chart for a better understanding

Technical Commentary 21/12

Wow! The KLCI index last minute drops 11.3 points to close at 1255.66. Presently the support level is about 1256 to 1248. If further drop below 1248 then the next support level 1237 is a crucial support for KLCI index in the short term. The market will turn bearish in the short term if the CI drops below 1237.

Despite the bad market sentiment today, most of our portfolio like Adventa, Supermx, IJMLand-WA, Sppport, and NTPM are not affected.

New Watch list

Airport (5014)
Break out from the resistance level 3.93 strongly with volume increase. The stock closed at 4.13, the temporary resistance level is 4.20 and the support levels are 4.00 and 3.93. Place a stop loss at 3.90 if you had bought this stock.

Existing stock to watch

Support (7131) - our stock watch on 12/12
Please refer to my previous chart on 12/12. I said that this stock support level is 1.21 and the resistance is 1.28. The stock was corrected for a few days but it never close below 1.21. It was pushed up on 16/12 with the candlestick form a hammer shape at the bottom, this indicate a bullish reversal. Today it broke out 1.28 and close at 1.31 with volume increase. The temporary resistance is 1.33 and the support is 1.25. If you had bought this stock, place a stop loss at 1.24 or 1.20 (-5 to -8%).

BRDB (1473) - our stock watch on 7/12/09
Listing Date: 02.07.1968
Market: MAIN
Sector: PROPERTIES
Par Value: 1.00
Major Industry: Construction
Sub Industry: Gypsum, Lumber & Building Supplies
SIC Industry Code: 1531 - Operative Builders
Last quarter earning profit: RM40, 918,000
Last quarter EPS: 8.6 cents, increase 139% Q-Q
Present PER: 5.11
Growth: 53% year to year
ROE: 9.01

BANDAR RAYA DEVELOPMENTS BERHAD is engaged in the development and management of prime residential and commercial properties in Malaysia. The Company operates in three segments: Property, which is engaged in property development, property investment and property management, including management and operation of shopping complexes, bowling centre, a golf course and sports complex; Manufacturing, which is engaged in the manufacturing and sales of wood based products, and Construction, which is engaged in the construction of residential and commercial properties. Along with its subsidiaries, the Company is engaged in the management of a golf course and sports complex and provision of landscaping services, and the manufacturing of chipboards and related products. On January 11, 2007, it acquired Raintree Forest Sdn Bhd. In January 2008, the Company acquired a shelf company known as mpiana Impresif Sdn Bhd. In August 2008, the Company acquired Lansbury Limited.

On 7/12 I mentioned BRDB has a very good support at 1.43(also a 200 days MA) with high volume. However the stock price did not move up but it dipped lower and found a support at 1.33. From there it rebounded for 2 days before we saw a big up today. Today it broke out 200 and 20 days MA. The Bolinger band expended 56% and the MACD crosses the trigger line however the MACD still below Zero level. The immediate support level should be 1.43 and the resistance level is at about 1.55. Due to the characteristic of BRDB, it might consolidate for a few days before it can move again. However we can not assume it always follow the same characteristic, all depends on the market action. If you already acquired this stock, the cut loss point should place below 1.41.

Stock to Consider:

MPHB (3859):

Multi-Purpose Holdings Berhad (MPHB) is engaged in the core businesses of financial services, stock broking and gaming. The principal activities consist of investment holding and trading, operation of general insurance business, provision of leasing, hire purchase, factoring and general loan financing services, operation and management of a licensed four digit numbers forecast betting game, operation of hotels and of a golf club, securities broking and dealing, designing and construction of railway and related activities, property development and investment, provision of share registration and management services, printing activities, and provision of computer software and other related services. It operates in four segments: Financial services, Securities broking and dealing, and Gaming and information technology. In June 2008, the Company acquired Caribbean Gateway Sdn Bhd.

The company dividend yield for year 2007 and 2008 are stood at 5.6% and 9.5% respectively. As at 30-Sep-09, the net asset stands at about 2.12. Today closing at 1.90 with significant increase in volume above average. MACD is rounding bottom at the juncture of crossing upward and almost at zero line. RSI at 58, STC at 87, and DMI is at a very good take off position. Concurrently, it is closing at the breakup off the triangle tip. In term of Elliot Wave, we manage to identify the EW count likely to project towards EW5 as shown in the charts attached below. Should any customers took position, we strongly recommend to preserved your capital if the price closed below 1.80. The nearest potential resistants are around 1.95/2.00/2.10/2.16/2.40....

Our watch list performance

Break new high

I believe you notice that I always mention a stock price broke out from its resistance, trend line, symmetrical triangle and so on. This is because a resistance means alot of seller wanted to get out from that price. I try to show the latest example of 4 stocks that broke out from the resistance and hit new high. Latexx-WA just broke out from the resistance today and hit new high. Will it go higher for a few more days? Is it too late or still early to get in? Please take a look at the picture below.

Time to collect platation stocks

After the rubber glove stocks flying sky high, the next sector we are looking is plantation stocks. We have a good reasons to buy plantation stocks for mid to long term. Firstly because of the CPO price was picking up >RM2500/ton sine Dec 09. As you know most of the plantation stocks are depend on the CPO price. I don't know you aware or not, our CPO price once traded above RM4000 per ton on Mar 2008. Those plantation stocks' prices also fly sky-high at that time. When the CPO bubble burst, the plantation stocks' earning started to fall rapidly. The CPO price was below 1400/ton on Oct 2008. This was hurting the earning result of the plantation stocks. The CPO price slowly recovers, the Dec CPO price is now >RM2500 per ton and the trend is expected to rise further above RM2600 per ton. The CPO price can be affected by many factors like below:
The global economic hot or cool, we expect the economic is going to pick up soon.
The Soya bean price in North/South America, under or over production, the weather and the inventory of the Soya bean oil.
The Agriculture commodity price
The USD, a weaker USD will cause the commodity price to rise
The CPO exports data
The CPO inventory data
The CPO production data
The Crude Oil has less impact now. The crude oil was >USD100 in 2008 that cause the CPO price to went up >RM4000/ton. This is because if the Crude oil price too high, people started to think of bio-diesel that derive from the vegetable oil to replace the Crude oil.

By looking at the CPO future, the Jan 2010's future is more than RM2550/ton and the Mar 2010's future is more than RM2600/ton. So we think it is time for us to pick up some of the good plantation counters now. We will start studying each counter from now. You are welcome to give us your suggestions and your opinions. Please see the attached picture of the CPO future prices from Jan 2010 onward.

Prediction on SuperMx

I always like to dream and predict something will happen since I was young. This time I would like to predict what would be the price of SuperMx on the next earning season in Jan 2010? Is the history repeating itself? The history had been repeated twice after the April 2009 earning season. The next earning result will be on Jan 2010; will the history repeat this time? What will be the target price? Please refer to my weekly chart of Supermx.

Technical Commentary 16/12

Today's market activity is more exciting than the last few days. The trading volume increased by 24%. We are happy to see the investors and traders started to step in the market again. Although KLCI Index dipped 1.78 points but it did not stop the investors/traders started to acquire 2nd and 3rd liner stocks. We hope the buying sentiment to be continued in the next few days.

Quick update for our stocks on the watch list that potentially run again

IJMLand-WA -Please see yesterday post by JK for more details. Today move up again. Although it is a small one, but Malays' believe "Tiap-Tiap Hari Sedikit, Lama Lama Jadi Bukit". So we believe the wave 5 is on the way.

NTPM - Our watch list on 9/12, the volume seems to build up on this stock. If you acquired this stock, you need to set the cut loss point at the support 0.52 or lower. We see some resistance at 0.555.

PRDUREN - Our watch list on 14/12, this stock seem to move up with very high volume today. However it faces a strong resistance at above 1.00. If you already bought, the cut loss point should set at 0.935 OL.

Rubber Glove families are moving with Adventa top the rest.

Wimax families are back in action with Gpacket and Gpacket-WA top the rest.

There are too many counters started to move today like IGB, Fajar... but I will pick 1-2 potential one for you.

Let me show some chart on these counters for your benefits.

Titan - Latest quarter EPS 8.24 (+1400% q-q). WPE=3.68, NAV=2.46, Current price=1.19
Technically this stock had moved up for 2 days. If it can break out from the symmetrical triangle at 1.20, it will turn bullish. The resistance is 1.20 and the support is 1.14. The support 1.14 also you threshold point for cut loss.

KNM - Last quarter EPS is 0.81 (-70% Q-Q), PE ratio 10.91, NAV=0.49, ROE=14.9, Current priice= 0.75
Technically this stock had rebounded from 0.71. The price crosses 200 days SMA yesterday. MACD rounded bottom, STC > 70%, the trend is bullish bias now. Please refer to the chart.



3A - Latest quarter EPS 1.91 (+97% Q-Q), PE ratio is 24. ROE=17.68, Current price=1.45
Technically 3A broke out from the symmetrical triangle today. The price stays above 10 and 20 days SMA, RSI >50 and the STC >70. If the price can break the resistance 1.47 with volume grow, we are quite confirm the trend turn bullish. If you acquire this stock, you need to set the cut loss at 1.33 OL. Please refer to the chart.

Stock to Watch:

IJMLAND-WA (5215WA):

IJM Land Berhad (IJM Land), formerly RB Land Holdings Berhad, is an investment holding company. The Company is principally engaged in property development, construction, hotel operations and investment holding. The Company operates in four segments: hotel, which operates and manages hotel and other related services; property development, which is engaged in development of land into vacant lots, residential, commercial and industrial buildings and management of properties; construction, which is engaged in construction activities, and investment holding, which is engaged in provision of corporate and financial support to the Company, property investment and other dormant companies. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company acquired 100% interest in IJM Properties Sdn Bhd and RB Development Sdn Bhd.
Whereas this IJMLAND-WA is matutred by 11-Sep-2013 with exercise of RM1.35 @ 1:1.

Should our FBMKLCI could sustain above the BBMB (1265) and gradually on uptrending, then this counter may potentially breaking new high at 1.40 and may finally rocking up toward the final Elliot Wave No.5 (as per attached chart below). In view of our parallel uptrending direction, the prospective techincal target may project towards 1.70 to 2.00 range depend on the market situation.

Today, the bollinger band open 2% with highest closing at 1.30. RSI stands at 80, STC stands at 100, MACD and MOM are uptrending, excpet the volume has not passed the average level of about 1,200 lots.

Lets keep monitoring for the volume participation to push the price higher. Should any one took position in it, always follow your own cut lost plan if the market unexpectedly turn around.

Technical Commentary 15/12

The KLCI pushed up to above 1270 in the last minute. The chart and the key indicators look better now but the volume is a big concern for us. The last minute pushed up could be the market action for year-end window dressing. If the price went up without any support from the volume, it could be a weak and quick one to finish the year-end show. Let's hope for volume to come back tomorrow.

Etitech today broke down 0.455 and closed at 0.45. So the bullish divergence has not form yet. We will re-visit this stock if it found a support later. We will re-visit other stocks on the watch list yesterday, as they are not performing today. The chances of moving up is still intact.

REXIT, which mentioned by our JK, is flat and little volume today. This could be one of the "Black Horses" that we won't know. JK is good on spotting the "Black Horses" like Eng and Notion before they really take off but you need to hold for a while. We will recommend more this kind of stock in future.

LCL finally found its support at 0.17 yesterday after Abu Dhabi's move to provide $10 billion in aid to Dubai World on Monday. However we try to avoid this stock for the time being. It is still uncertain on its financial status.

Rubber glove's family is still a highly recommended stocks for mid to long-term holding. They are at least good until year 2011. I don't have to mention why you need to buy and hold them, there are many analysts already done the job for us. If you want any article please email to me. Today the rubber glove's family was in action again. I like Adventa and Supermx but TopGlove, Harta, Latexx and Kossan also a good counters for long term plan.

Re-Visit our watch list

Gamuda consolidates well above 2.67 for 8 days. The MACD rounded bottom and the price is going to stay above BBMB soon. Keep monitoring.

3A - Watch for break out 10 days MV=BBMB=Trend line at 1.37. The resistances are 1.45, 1.60 and 1.77. The support is 1.35 and 1.25.

KNM - If you remember my posting on 28/11 on my Tutorial page before, I mentioned KNM if break down 0.74 it will test 0.69. The lowest it went down is 0.70 and found a temporary ground there. Today it broke out 0.74 and stay above it to close at 0.745. The trend is reversing to up trend now after a 2 days pushed up. It stands above 200 days MV, a very important pivot point now for continuation of up trend. Since there is a gap above it now, we expect a stronger resistance above 0.76. If you bought it today or going to buy it tomorrow, you need to set a cut loss point at or below 0.71.

Additional Counter to Watch List:

REXIT (0106) :
Rexit Berhad (Rexit) is a Malaysia-based investment holding company. It focuses on delivering solutions and services to the insurance industry. The Company offers Web-based insurance solutions, which cater for the front-end marketing and sales functions, as well as the back-end operations and management requirements of insurance companies. Rexit’s e-Cover application enables a business to deliver products and services electronically.
The company last year ended 30-Jun-09 stood at dividend yield of 5.6%. Gearing ratio is not more than 0.50 and both return of equity and asset are comfortably above 15%.

For the past 8 months, this counters has been damping within the range of 0.450 to 0.920 (below MA200) and settling close to around 0.630. Since Feb-08 until now, today is the first day this counter comes in-touch with the MA200 line at 0.627 (intraday crossed up 0.630). The price is propagating toward the end of the symmetrical triangle. MACD is round bottom and crossed upward but slightly below zero, RSI stands at 54, STC stands at around 95, MOM above zero, fairly increased in volume. Bollinger band open at 16%.

Unless it breaks and sustains above 0.630, otherwise it may consolidate within the range of 0.580 to 0.630 toward 0.600 tips. Possible resistance levels are 0.650/0.680/0.750/0.820. Should it fall below 0.580, it is a negetive stand where it will be reviewed again. By then better preserve the capital.

Technical Commentary 14/12

TCHONG – Our watch list on 08/12/09 and our winner list on last Friday, today broke out RM2.70 and hit 11 years high. Normally when there is no resistance above, the stock price can push up smoothly. The stock closed at 2.94, highest price for today. We will assume 2.94 as the temporary resistance and the support is 2.70. The volume also broke out 2 years high. If you did not acquire this stock on last Friday or this morning, it is hard to chase now . I believe there will be some profit taking either tomorrow or Wednesday. So you can wait for profit taking over and keep it on your monitoring list for now. I will keep my eye on it.

LBS – Our watch list on 09/12/09 today broke out resistance at 0.485 and goes as high as 0.52 before close at 0.50. Now it faces some resistance above 0.50. If it can be supported above 0.485, the chances of breaks through and retest 0.52 is still intact. However we need more volume to support the stock price.

PRDUREN - Our winner list on last Friday, today volume continue to increase to 16K lots. Share price up 12.4% and closed at highest at 1.00. Look like the up trend wil continue tomorrow.

Stock to Watch

PLS - Volume broke out and broke new high at 1.30. The pattern same as HumeInd and ENG, potentially a short-term uptrend. Place it in your watch list.

Etitech had been falling from about 0.85 since 13/10/09. The stock price found some support at about 0.455. If the stock price rebound from here and sustain above 0.47 or higher (OH), a bullish divergence signal is formed. However if you acquire the stock at above 0.47 but somehow it cannot sustain, you need to cut loss below 0.45. Please refer to the chart below.

TAKE NOTE: Our chief technical analysis guru, JK Kang will post additional stock watch tonight. Please login again to check this Blog.

Breaking News

LCL fear of facing more default loans

LCL enterprise became the first hit by the Dubai Financial crisis Malaysian company, declared itself unable to repay Affin Bank and BIMB Bank on schedule of 72 million ringgit of debt, analysts expect more bad news from LCL in the coming months, including the emergence of the other default loan. Since Affin and BIMB also affected by the bad debt, please do not buy these 3 companies' shares in the mean time.

A reminder again, please don't touch LCL because it is cheaper now. Do you think any body bought LCLs' shares on last Friday? Of course there are, otherwise who bought the LCLs' shares from the sellers? There were 414588 lots transacted last Friday, those people will regret now after they acquired the stocks. They will pray for LCL's stock price to rebound tomorrow. Do you think it will rebound any time soon? So I hope all our investors who log in to this Blog can learn something from here. Cut Loss! Cut Loss! Never average down, never buy a stock when its share price getting cheaper and cheaper.

Analyse Support's trend

On 23/11/09, there is an announcement from Support International as below. Since then the price was started to surge. On Friday, this counter was having some profit taking due to T+3. Some weak hands were shaken off. Although its share price dropped -2.4% on Friday, the bullish trend for short term is still intact. The weekly chart for the mid-term is bullish. We will keep monitor next week to see whether the support level 1.21 is able to support the sell off. If so, there might be a trend reverse. Please look at the chart below.

THE ANNOUNCEMENT
Strategic Cooperation Agreement between Supportive International Holdings Berhad and Digital China Advanced Systems Services Limited, a subsidiary company of Digital China Holdings Limited (“Strategic Partnership")

INTRODUCTION
The Board of Directors of Supportive International Holdings Berhad (“Supportive” or “the Company”) is pleased to announce that on 23 November 2009, Supportive had entered into a Strategic Cooperation Agreement (“SCA”) with Digital China Advanced Systems Services Limited, (“DCASS”), a subsidiary of Digital China Holdings Limited (“Digital China”) to commission DCASS to provide technical advisory service in relation to Hunan Province Chang De Municipal Value Added Operations Project (Citizen Card and Mobile Electronic Business Project) (“CCMEB”).

Click to enlarge

Market Commentary 11/12

Despite the volume further decrease by 7.5%, the first time I saw the winners and the losers about 50% on both side after a few days of downtrend. The market activity is extremely quiet during the middle session until about 3:30pm, it was getting more active. The Finance, construction and property index seem to rebound from here. The market still consider as consolidation and minor correction for certain stocks. There are a few winners today
· The Affin family - Affin, Affin-WA and Affin-CA
· Tchong - volume increase, looking to retest 2.70.
· ENG - volume increase, broke 16 months new high at 1.46. Up 13%
· PRDUREN - a low liquidity stock. Today volume increase and price up 27%
The KLCI is still supported by 1256 level, a 23.6% Fibonacci Retracement. It was resisted by 10 days EMA 1263.5. The outlook of the European market especially Dax and FTSE100 looked bullish biased today; hopefully the sentiment will lift up the Dow Jones tonight.

LCL is the big loser today. The stock price is getting cheaper and cheaper everyday. It broke a few major support levels and closed at historical low at 0.22 today. As you can see, I always alert our investors do not average down. The risk is getting higher and higher if you do averaging down. Who know this stock will suspend and then de-listed one day? Then all your hard earn money will drain into the water. So it's the best pratice to enforce your cut loss policy in your trading plan. You won’t get into the trap if you have a cut loss policy. Please see the LCL’s chart below.



Note: If I spot any potential stock, I will post it during the weekend. Please come to join our forum. You can ask question or provide good inputs and opinions. We have a few guru here can answer your question.

Market today 10/12

FBM KLCI rebounded 4 points today and closed at 1259.9. However the market participants further declined by 8.3%. This is to say that more investors chose to sideline. The overall market trend remains bearish biased. If the market volume remains weak in the next few trading days, very likely KLCI will test the crucial support at 1237.

Our market mostly influence by Dow Jones and regional market. Let’s look at Dow Jones first. On the chart there are 2 trend lines A, B and a horizontal support line at 10105. The resistance is 10516. The outlook of DJ at this stage is under consolidation. The short-term bullish outlook is not damage yet unless it further breaks down below 9700 points. Right now it is supported by the trend line A. If the trend line A is broken, the next support is 10105 and the trend line B. Let us monitor its trend closely for the next few days.



Note : Keep monitoring SUPPORT. It is well supported at 1.24. I had been watching this stock for 3 days.

Mid-day 10/12

The market volume continues to decrease further. It is harder to made short-term money now. We observe many stocks are having bearish signals now. Examples of these bearish signals are Head and Shoulder, Bearish Divergence, Lower High and Lower Low. Even Supermx, Adventa and CIMB have a Bearish Divergence signal, Genting form a lower high and KNM form a Head & Shoulder pattern. All these symptoms tell us that the market is going down trend. We are looking for a rebound at 1237 if it comes down. Otherwise we will see a more severe correction this time.

Take Note:
Due to the low market volume, it is very hard a made short-term profit at this time. I will skip mid-day commentary for the time being until we see a volume improve. However I will continue to provide daily market commentary after the closing. I will post more examples of the bearish signals, which I mentioned above. I will also post a weekly technical analysis tutorial and share trading for the beginner. Please login regularly to check the update on this Blog and the Tutorial Blog.

Stock to Monitor 9/12

Good news! My master agrees to team up with me and provide you a broader view on our stock market. I will announce who he is soon. He is a technical analysis expert and the king of the short-term investor. His full time job is trading share for living since many years ago. So I hope we will provide you a much better service in future. He believes 101% on technical analysis rather than fundamental. Unlike me, you will see a lot of penny stocks recommended to monitor from him.

Stocks to watch from my master

LBS – Technically setting up well on the trend and volume. The immediate resistance is 0.465 and the next resistance is 0.485. The support is around 0.45 to 0.44.

NTPM – Breaks out from a side way. The resistance is 0.57 and the support is 0.51.

IJMLand – Push up from today low and close at 2.33. The resistance is 2.41 and 2.46.

Also watch these stocks (from me)

FABER - Breaks 27 months new high. Immediate resistance is 1.60 and the support around 1.47.

CHINWEL – Candlestick form a hammer shape at the bottom with volume grows. This signal a possible push up.

SAPCRES – We need to re-visit this stock again as the 2.25 resistance was retested and broke out again. The candlestick forms a bullish engulfing pattern, which is highly reliable.
(Beware: This stock has a bearish divergence signal, only for very short-term trade)

PJDEV – Same as Sapcres, candlestick forms a bullish engulfing pattern.
(Beware: This stock has a bearish divergence signal, only for very short-term trade)

Market Commentary 9/12

Same as the mid-day commentary, market remain bearish. I don't have anything for you at this stage. If I found some thing useful; I will post it tonight. Please check this Blog tomorrow morning.

CIMB maintain OVERWEIGHT on Rubber Glove and plantation sectors. If you need a full report from CIMB, please email me or leave a message on the right hand side. I will send it to you.

From CIMB :

Rubber Glove sector
We are heartened by the level of interest that investors showed during our rubber glove day where six of Malaysia’s biggest rubber glove companies shared their thoughts and plans with some 40 fund managers and buy-side analysts........We maintain our OVERWEIGHT stance............All the glove stocks under our coverage remain as Outperforms, with Adventa and Supermax staying as our top picks. We raise our earnings forecasts for Adventa and Top Glove Corporation by 1-10%.

Plantation sector
We retain our CPO price forecasts and earnings numbers for all the plantation companies in our coverage and continue to OVERWEIGHT the sector due to our bullish view on CPO price and the improving earnings prospects..........Better 4Q report card. We expect planters’ to report better earnings in 4Q on both yoy and qoq basis due to higher selling prices, lower operating costs and higher production.

FBM KLCI 9/12

The market is extremely slow and makes me fall in sleep. There is no point to sit in front of the screen if the market volume goes on like that. I don’t have any information for you this afternoon.

Let’s try to predict the market. The market is slowly going down every day. We saw a bearish divergence signal on 17/11/09 and this time it worked. The market’s trend was reversed after the bearish divergence signal. Luckily for us the divergence signal is not a strong one, otherwise the market should had plunged aggressively.

Let’s see what are the support levels? The immediate support is 1256 and the next is 1248. If 1256 and 1248 are broken, then 1237 is consider as a crucial support for KLCI in the short term. It should rebound from there; otherwise the market trend will reverse to mid-term bearish if 1237 is broken. Please click and check the KLCI chart below.

Market today 8/12

We have to accept the market is in the bad condition. The market is not exciting at all. If you remember my previous post, "we need to respect the market, do not trade against the market trend". Most of the stocks will follow the market trend. Technical analysis will not work well in the down trend market. However technical analysis can help us to minimize the risk in the down trend market. It can help us to decide where we should take profit or cut loss to exit the market. So I hope that you can do the same, maximize the gain and minimize the risk.

What should you do during this time?

1. Maximize your cash. Your exposal in the market should be less than 30%.
2. Wait for the market to correct further, sideline first.
3. Do not average down. Most people like to do averaging down.
4. Do more home work and get ready for the market to rebound.
5. Observe the local and global market trend and economic data everyday.
6. Login in to my Blog to check the daily updates.

From now onward, I have to pick the counters very careful. I will only pick the counters with higher chances. I am still looking for 2 types of trends and a candlesticks formation.

1. Continuation trend like:
Break out from ascending triangle, symmetrical triangle, descending triangle, wedges, trend line and etc.

2. Bullish reversal pattern like:
Inverse head & shoulder, rounded bottom, cup&handle, double-bottom and triple-bottom. These patterns are not easy to find now. But if the market continue to correct, we might be able to find some. They are very reliable.

3. Reliable bullish reversal candlesticks formation like:
Bullish engulfing, hammer, morning star, bullish kicker and etc.

Put these stocks in your watch list for the time being, I will check tonight and see any other potential stocks which will run soon. Now there are many stocks suddenly pop-up from a consolidation phase since many months ago. Frankly speaking we are not able to catch them because there is no signal at all, like increase in volume and etc. Normally the volume only a few lots to a few hundred lots daily during the consolidation phase. In another word we called it a "collection phase". Now is the time for the “Smart Money” to distribute to you. Did you notice JAYCORP and AEM?

Watch List doesn’t mean it can buy now. All depend on the real time market action. When we buy a stock using technical analysis, we don't "eat the head and tail". We are not greedy, we only want the center part. If got a chance I will explain that in future.

SUPPORT
ADVENTA
SUPPERMX
TCHONG
BSTEAD

Mid-day Commentary 8/12

Market still no improvement. A lot of CI components including Genting were under correction. If you want to collect CI components, please wait for a while. I believe the trend is consolidate and toward a small down trend. If the regional markets are getting bad, we cannot escape from down trend. My advice now is to reduce your capital exposal to about 30%. Buy only the good stock using technical analysis. Even if you are a long-term investor, it is good to wait for a while to buy them at a cheaper price. Try to avoid any CI components at this time; they are a bit over value. Due to the outbreak of H1N1, you can pay more attention on the rubber glove industry. The cheapest one is Supermx; base on its PE ratio and forecast grow by the analysts.

Due to the bad market sentiment, the new stocks that I mentioned yesterday were not really move. They either minor down, unchanged or rose very little. Out of all, Bstead has the most potential to go higher if it breaks 3.70. Anyway you can still put them in your watch list.
If I spotted any potential good counters during the market day, I will post it. Please login to check my blog at the mid-day and the evening commentary. There are not many counters can buy now.

ADVENTA – Our baby is back after it consolidated for 3 days. Now it exactly resisted by the trend line 2.52. Watch for break out 2.52. The trend for this stock is still an uptrend. Please refer to my earlier post called higher low.

TCHONG is another counter we can pay attention on it. I saw this counter was moving for 2 days but I did not post it due to the volume was retreated yesterday. Today’s volume is huge; it broke 2.49 and now looking to break the next resistance at 2.61. The support level is 2.40.

The trend of HIL 7/12

Someone post me a comment on HIL regarding its trend. Well, I were say the mid-term trend for this stock is looking very "tire" as it already run for 6 months. It has a very solid support at 0.80. If this support is broken, very likely the up trend is end temporary. However if it rebounded from the support level 0.80, the trend may continue. Please click the chart below for your reference.

Market Commentary 7/12

Yes, we had confirmed the market further weaken today. The KLCI finally unable to close above 1270 after sustains above it for last 3 trading days. The volume fell below 700 million shares. We had sold most of our stocks in the late afternoon session as we saw the market is slowing down. Nevertheless we expect the CI components are under correction this time. The KLCI is closed below 20 days moving average (EMA) now. The immediate support level is about 1254 to 1248.

GENTING – Bullish bias, resisted by trend line 7.45 and 7.50.

HIAPTEK –We expect a short-term consolidation as the resistance advanced to 1.55 and above. The trend is still bullish.

KPJ went up to 5.92 this morning and facing some selling pressure to close at 5.73. The candlestick forms a long shadow today and signals a short-term consolidation. Uptrend is limited. Nevertheless the trend still bullish.

MEASAT as expected after a one day big up, it was under profit taking. The candlestick is out of the 20 days Bolinger upper band now, so I expect a short term correction and consolidation happen before another uptrend restart.

EONCAP confirms in the uptrend but facing a stronger resistance above 6.26. Despite the price grew 3.5% but I expect the uptrend is limited due to the buying volume cool down.

New Stock to watch

BSTEAD had formed a rounded bottom. Good buy if it able to break 3.70. Keep watching.

IJMPLANT – the problem for this stock is the support volume is too little. Watch for break out 2.65 with volume.

SUPPORT – The fundamental of this stock is not good. I had been watching this stock for a few days and it’s still up bit by bit everyday with the daily volume more than 40 days moving average. Today it broke out short-term resistance 1.21. The uptrend looks promising.

RUBBEREX – Continue to rise for 2nd day with low volume. You need to watch for the volume grow and break out 2.02 before you consider it.

BRDB – Price hold at 1.43 for 3 consecutive days with high volume. Trend reversal might happen anytime. Keep watching.

Mid-day Commentary 7/12

The market’s volumes further reduce in the morning session due to lack of participants. We have to be a bit caution to select the stock at this stage. I mentioned before try to avoid any penny stock less RM1.00 or RM0.50. The market further consolidates in the morning session because there is no fresh good news to lift the buying sentiment.

GENTING – Continue its uptrend direction and it just broke the resistance at 7.4o and closed at 7.41. It will face a strong resistance at 7.50 to 7.70. The volume is still considered low in the morning.

HIAPTEK – Confirmed uptrend after it broke out from 1.51. However it faces a stronger resistance at 1.58. It need more volume to overcome that, otherwise we will see a short-term consolidation.

KPJ went up to 5.92 this morning and facing some selling pressure to close at 5.75. The candlestick forms a long shadow in the mid-day and signals a short-term consolidation. We hope the price will recover in the afternoon session; otherwise we have to take profit first.

MEASAT as expected after a one day big up, it is under profit taking. However it is not a heavy selling, there are still many investors wanted to get in. The candlestick is out of the 20 days Bolinger band now, so I expect a further correction and consolidation before another uptrend.

SAPCRES – As I said last Fri the short-term trend is bearish if it stays below 2.25. This morning it retests 2.25 and successfully stays above it. The trend might reverse to uptrend if it able to break 2.33 resistance level. Buy beyond 2.33. The mid-term trend is still bullish.

EONCAP confirms in the uptrend but facing a stronger resistance above 6.26.

We are looking for 2 types of trend. I.E.; a continuation trend and a reversal trend.

HUMEIND and CHOOBEE – both stock break out short-term resistance with volume. Both stock are low liquidity (low volume) stock. You have to prepare for mid to long term holding if you decided to buy this type of stock.

FABER gap up with volume, watch for break out short and long-term resistance 1.53.

I saw some plantation counters are in the move, watch BSTEAD, IJMPLANT and IOICORP.

Trading Plan

Trading plan is a very important aspect when you pick a stock. You must do your homework before you go to the stock market. My Blog provide you a list of stocks, which I filtered from all the stocks in KLSE everyday. I hope that it can help you to investigate further on its chart pattern and fundamental.

What is a trading plan for buying a stock?

After choosing a stock that you have predicted it is in the up trend direction, you need to start your planning. What are the factors you need to consider?
1. You need to find out where is the resistance and the support level
2. You need to decide where is the best entry price
3. You need to decide where is the cut loss price
4. You must be disciplined, follow your trading plan

In my Blog, I usually state the resistance and the support level for each stock. So you can save the trouble to find out the resistance and the support level if you follow my stock pick. So where is the best entry price? As a chartist, we normally look for the stock to break out of the trend line or the resistance before we consider to buy. Don’t ever place your buy order at the resistance or below the resistance 2-3 bits. The resistance is point where there are many sellers who bought at that level some time ago (a few months to a few years) and most of them are waiting to sell their stocks at this price. So we have to wait until it breaks the resistance and sustain above it. This is to say that there must be an in flow of new capitals in order to replace the sellers. Otherwise it will fail to break the resistance.

Technical analysis sometime will not work, so you need to decide where is your cut loss point after you had bought a stock. The best way is to determine the support level. If a stock doesn’t break down the support level, that means the stock still has a chance to go higher after the profit taking and consolidate. Please check my “higher low” post a few days ago. However you may cut loss first if it really goes below the support level for a few bits. Some people decide the cut loss points like –5% to -8% below the buying price. It depends on individual. There are many other advance methods to decide the entry price and the cut loss point which I will cover later. I will touch on why cut loss is so important on a different post.

The last and very important aspect is the “Discipline”. Plan your trade, trade to your plan. Do not change your plan after you had established the plan. This is the step where most people fail because of Discipline. I will try to touch on selling plan on a different post.

Take Note: I had received some comments on the last 2 posts. Please check them and feel free to sent me a comment under each post. I will try my best to answer you.

Market Commentary 4/12

Today market was having a minor correction on FBM composite index and a minor to moderate correction on the lower liners. Overall market was very quiet with trading volume slightly more than yesterday. The FBM KLCI fell 2 points and just closed above 1270.

Genting - Technical position is looking good. Support at 7.24 and resistance is 7.40. The price was retreated 7 cents after the closing price calculation at 4:50pm. I think I know why it drops.

KPJ - Up trend continue but there is volume divergence. However the price is convergence with the indicators. I believe it still can go higher if the market sentiment comes back next week.
The "Ex-dividend"(10%) is on 15 of Dec. If you do not want the dividend, you may take profit before 15 Dec. Normally the price will drop after the "Ex-dividend".

Adventa consider as consolidation and minor correction for Supermax.

Measat up 14%, looking for profit taking on Monday before it restore the up trend.

Hiaptek might restart the up trend if the market sentiment comes back next week. The volume today is insufficient for it to break the resistance 1.48. Watch for break out resistance 1.48 and 1.51 next week.

Sapcres had drop below 2.25, short term does not look good if it stay below 2.25. Bearish divergence on this stock is seen, as the up trend did not carry on 2 days ago.

Notion - After broke 2.75 and goes as high as 2.78, the price pulled back and closed at 2.69. The candlestick forms an inverted hammer, which indicates a short-term correction or consolidation.

Other Stocks to Watch

AMMB’s technical position almost set, this is a slow and steady rising stock. Immediate resistance is 5.07.

EONcap has no technical position but the volume is very high today. It closed the gaps as well as broke the short-term resistance 6.04 but unable to sustain. Is it a 1-day show or a real up trend? Keep monitor next week.

Mid-day Commentary 4/12

The overall market continues its correction and consolidation today. The market’s trading volume further retreated in the mid-day. That's mean most of the investors are staying sideline and waiting for a clearer signal. We don't expect the market to rebound today without any positive news. However we also don't believe the market will collapse anytime soon, it will stay consolidate for a while. Anyhow, there are still many individual potential stocks we can look for.

Measat - If you follow my Blog so far, you will remember I spotted Measat on 26/11. After a 1-day big gain, the investors started to take profit as the Dubai World crisis happen and the market was big downed on the next trading day. This had stopped Measat's price to go higher. Today Measat come back to break the resistance 1.93 and sustain above in the mid-day. The stock price advanced 9.94%. We saw some resistance at 2.00.

Adventa - Still bullish bias after a minor profit taking yesterday. For the price to grow further, we need to see more buying volume. I don't think it can makes it today as the market sentiment is bearish. The price advanced 0.84% for the mid-day.

Sapcres - Still under correction and consolidation. It has a strong support at 2.25. If broke down 2.25, the next support will be 2.20. The price retreated 1.31%. We saw a bearish divergence on this stock, if it unable to hold at 2.25, the best way is to exit first.

Notion - This morning broke out 2.75 but it unable to sustain with limited trading volume. Keep monitor. The price retreated 0.37 for the mid-day.

KPJ - Price continue to advance in the early morning but retreated to close unchanged. I didn’t see any bearish divergence signal yet. Keep holding if you bought this stock.

Genting - I mentioned this stock 2 days ago, it had broke out the trend line at 7.24. The technical position looks very good now. I expect to see a slow and steady up trend but not a big up daily. Price advanced 1.66%.

Hiaptek - It regains some strength, keep monitor. Price advanced 1.38%. Need volume to come in.

You will noticed I did not mention any penny stocks less than RM1.oo since last week, this is because the market is getting higher risk now. You will notice many penny stocks played rotationally, some only one-day show and never come back. So the chances of losing more money in penny stock is higher that holding a good stock when the market crash suddenly.

Market Commentary 3/12

Today overall market was bearish biased. However it consider as a healthy correction as the volume decrease by about 25%. The investors chose to take profit or stay sideline after a 1-day moderate gain on most of the stocks yesterday. The FBM KLCI manage to stay above the Bolinger mid-band and the support level of 1270, it closed at 1272.35.

Most of the stocks I mentioned yesterday were under profit taking today except KPJ continues its up trend momentum. Mudajya and WCT have a small gain, while rest are having a minor correction.

New stocks to watch

3A - This stock shows some trend as the price and the volume were increasing today. The immediate resistance is 1.48. I saw a very strong resistance above 1.48 to 1.69. Watch for higher buying volume grows in the next few days. Otherwise it is just a normal rebound after it has been sold off for many days. Put it in your watch list.

Notion - The volume gradually increase for the last 3 days with the price follow the volume trend. Watch for break out the resistance at 2.75 and 2.85. Once it broke the resistance 2.85 and sustain above it, very high chances it will continue its up trend.

Higher Low - A Bullish Trend

Today market sentiment is more toward bearish bias; the trading volume is very low in the morning session. Many of the counters I mentioned yesterday were under profit taking today. We hope this is a short-term healthy correction rather than a major correction.

The concept of "Higher Low"

You have to understand a counter cannot keep rising continuously for weeks or months without any correction. For a bullish trend to continue, there must be a healthy correction in between. For example, a counter was trending up for about 4 to 5 days. Many investors will start to take profit because they afraid the price may fall. When the stock's price drop to a certain level, it started to rebound again because many investors who "miss the boat" previously will rush in to buy. There must be some good news on this particular stock. So they will not wait until the stock price to fall until the previous low. The process will continue for a few times and the stock price keep rising for a certain period. This so called a bullish trend and the higher low confirms the bullish trend.

I quote you two examples below. Please review the chart pattern of Sapcres and Adventa.