Watch Sapcres

I normally don't recommend you to buy any stock when the market is in the down trend. However if the market is getting better, you may take a look at Sapcres. Sapcres was broke down from the ascending triangle on last Thursday. But today Sapcres successfully broke back the trend line again with buying volume increase. The immediate resistance is 2.25 and the next resistance is 2.31. The closing price is at 2.25 right now. The support is 2.20 and 2.10. Please refer to the chart below for your reference.

Click to enlarge

Market Closing 30/11

After having a panic selling in the morning , more than 200 stocks managed to recover and close positive. Some stocks like GPacket and Redtone even make a big gain for today. However I suspect the KLCI 30 components were under correction this time. Out of the 30 components, only Maxis, TM and Petdag are closing positive. Something is very unusual during the closing price calculation at 4:45pm. KLCI index suddenly drop about 6-7 points when the market resumed at 4:50pm. Futher analysed KLCI index, I discovered a few big caps like Bat, CIMB, Digi and a few others were pushed down during that time. KLCI minus 11.5 points and closed at 1259.11 with about 1 billion shares exchanged. Technically the KLCI had broken down the trend line. The resistance for KLCI now is at about 1264-1267 and the support is about 1250-1248.

Respect the market 30/11

The most important advice I can give is to trade with the general market, and not against it. For example, if the market is heading lower but you see a continuation uptrend in a certain stock, it’s advisable not to buy it in most cases. As with all technical patterns, there are failures and the easiest failures come from ignoring the general market direction. Since 3 out of 4 stocks follow the market, any continuation trend can fade toward the direction of the market, so don’t go against the market trend.

As expected, today the stock market open with a panic selling especially at the first 5 minutes. The KLCI dipped as low as 1248.5(-22 points) on the 3rd minute before it slowly gained trend. I usually advice people don't sell their stocks at the first 30 minutes. You normally got the worst price during the first half an hour because buyers not likely to bid higher. Usually it takes about 1 hour to settle down. KLCI continue to gain trend and closed at 1264.3 at the mid-day closing. Technically KLCI is supported by 1263, the next support line is 1250 to 1248. The immediate resistance is 1270. There are 583 stocks losing and 77 stocks gaining.

Dubai World financial crisis might or might not impact the stock market. However the construction and the building stocks were greatly impact. Other regional market are rebounding except Singapore and Malaysia are retreating due to the stock market did not open last Friday. Hang Seng index up >3%, Nikkei 225 index and Seoul composite index up >2%. The Europe markets were rebounded last Friday after they closed more than -3% on Thursday. Due to the market direction still unclear, we don't advice to buy any stock at this stage.

Volume confirms the market action

Volume is extremely important. For a trend to continue, volume must increase. This represents added interest and additional buying which is required for a trend to propel itself to a new highs. If a rally continues on lower volume, the trend cannot sustain itself and will fail. Let’s take a look at the rallies we had in 2007 to 2008 as an example. Notice how the rallies were made on lower volume which I classified it as a weak bull. Let's look at each phase
Phase 1 - "Smart money" accumulation and market consolidation.
Phase 2 - Media promotion, investors and retailers started to buy. "Smart Money" continue to buy. Price and Volume increase.
Phase 3 - More investors and retailers are buying, "Smart Money" are selling. Price increase but volume started to drop.
Phase 4 - More "Smart Money" exiting, price started to drop and volume started to drop as there is no inflow of new capitals. The retailers either got trapped or cut loss.

Please refer to the KLCI weekly chart for your reference

Click to enlarge

Market Closing 26/11

The market is getting very bad in the afternoon session. Although the KLCI manage to push back above 1270 at the closing, no doubt I classified this as the start of the correction for many stocks after the penny stocks were corrected since last week. The most severe sector is the contruction, many well known good construction counters like Gamuda, Wct, Zelan and Sunway are badly hit. The construction Index look bad right now.
The problem started from Gamuda since the last 3 trading day ago, something is very abnormal on this counter. As you can see the selling volume is huge today. Why people wanted to get out from this counters? The chart gave us the 1st signal to get out from this stock when it broke down from the support trend line at about 3.05. You see if you are a chart user you will not get into the big trap. The most you loss less or gain less rather than no gain but big loss.
(Please check the Chart Pattern for Gamuda and Construction Index) come inside

The KLCI only dropped 0.39 point with 401 losers Vs 267 gainers. The KLCI was dropped below 1270 at about 4:30pm but it was pushed up again at the closing. The trading volume is still low with about 764 Mil shares exchanged. We have to be very caution right now, you either side line or select the good stocks that just break out the resistance with buying volume. Hil, Astro and Measat are the examples of the counters that broke out of the trend line with buying voume today.

Measat Broke out 26/11

Spotted Measat breaks out from the descending triangle in the mid-day closing. Right now it sustains firmly above the resistance 1.74/1.75. Technically it is a good buy above the trend line when it just broke out with volume. Please refer to the chart below.
Take note that the sister company Astro also has the same pattern but the trend is not as strong as Measat. Seem like there is something is going on. Technically we know something is abnormal ahead.

Click to enlarge

Pay attention on HIL

Today took only 1/2 day off from the market. Today market sentiment a little improve than yesterday. We found one counter called HIL just broke out today. This is a good fundamental 3rd liners from the main board. HIL after having uptrend for about 5 months, it started to correct and consolidate for about one month. It has a very good support at about 0.80 sen. Today it opened with a small gap up and continue to break out the symmetrical triangle and the small H&S of the left/right shoulders resistance of 0.86. The highest price in the morning session is 0.875. The mid-day closing is o.85, just below the resistance. Watch for break out of o.86 and sustains above it. Please refer to the chart for reference.
H&S= Head and Shoulder

Click to enlarge

Market Closing 25/11

The local market had confirmed further correction and consolidation. The trading volume still low with the losers beat the gainers by 358 Vs 288. We remain very caution at this stage. This morning there are many oversold counters were gaining some trend but the trend was getting weak in the afternoon. Hence we suspect there are many investors choose to sell and stay sideline. Maxis buying interest come back today after it had been sold for the last 4 days. Is it a technical rebound or real up trend? We saw Proton is a good buy for today. If it can break the resistance 4.06, the next hurdle is 4.16 and 4.26. However if the market sentiment remains bad, we don’t expect Proton can do much. I believe it is still a stock to buy for mid to long term. Lets stay sideline for a while.

Important Notice

I will leave the market for 2 days and I will not watching it real time. So there will be no update during the mid-day but I will try to summarize the market trend after the closing. Please login regularly to check this Blog. If you feel that the Blog can help you better, please write your suggestions and email to me. Thanks for your support.

Technical View on KLCI

The Index is marginally supported above 1270 today. However the overall trading volume is lower than 40 days volume moving average (VMA). When the market is consolidate, it is okay to have a lower volume. But looking at the lower liners, it is actually still under a further correction on many counters. It is not easy for FBM KLCL to fall after the bendmark KLCI 100 is replaced by FBM 30 composite index. The reason is we just need to support a few big caps like CIMB, Maybank, PBB, IOICorp and Tenaga. So it really hard for us to analyse for KLCI correction.

By looking at the chart below, FBM KLCI was encountered a bearish divergence during Oct 09 but somehow it doesn't fall. Although the KLCI still considered as a bull but it is a weak bull. The strength is getting weaker. Will it burst one day? I want you to take caution right now, the heavy weight counters are a bit expensive eventhough the PE is reflecting 2010 forecast earning. So be more sensitive on your investment, avoid buying any bad fundamental and low liquidity counters.

Click to enlarge

Market Consolidate 24/11

Despite Dow Jone up more than 1%, but the regional markets and local market are not doing better. We suspect the bulls are running out of steam and the heavy weights correction might start any time soon. We had seen many lower liners had been corrected more than 30% in the past few days. Right now the gainers and the losers about 50 Vs 50. The investors are very caution now as you can look at the trading volume was very low today. Our team decided to clear all the porfortlios or reduce the positions this morning. If the market without any fresh news, it is difficult to turn around in short term. We expect the market will consolidate rather than uptrend in the short term.

Supermax - Profit taken
Adventa - Profit taken
Mudajaya- Profit taken, some cut loss and some reduce position
Maxis - Some cut loss and some Hold
Affin - Some of us aquired this stock yesterday. Up >5% today, Hold

Stock to watch - None, keep side line until further notice

Severe Correction 23/11

The market experienced a severe correction in the afternoon session. The condition was getting a little bit better toward the end. Total losers are 428 vs the gainers 234 counters. It was more than 470 losers one time at about 3:30pm to 4:00pm. Ninety percent of the top 20 active counters are in RED. FBM KLCI droped 3.48 points with a total volume 808 Mil shares exchanged.

Since there are many lower liners were under heavy selling for the last 3 days, we believe many stocks will rebound tomorrow temporary provided the Dow Jone can not closed too bad.

How is our stocks doing?

Mudajaya went down 1.92% and closed at 4.60. We suspect the investors take the opportunity to sell after the price had been pushed up from 4.20. We also suspect it could be the T+7 force selling because today exactly the "trading day" plus 7 days(some Securities give 7 days) which is due for payments. The contra players might not want to hold the stock. Nevertheless there is no bad news on this stock. We continue to hold.

Adventa went up 2.26% and closed at 2.36. Due to a bad market sentiment, it still unable to sit above 2.40 but it seated firm above 2.26. Many sellers started to take profit. We continue to hold.

Supermax went up 1.50% and closed at 4.07. It was one time pushed down to 3.98 at above 4:00pm, fortunately there are alot of buyers pushed the price back to 4.07. We continue to hold.

Maxis went down 0.93% and closed at 5.32. We plan to hold for longer term.

Counters to pay attention
AFFIN - Despite the bad market sentiment, it was holding well above 2.40 and closed at 2.46. Today is the T+5 trading day, the stock could fly again after the T+7. If the good news turn on again(bank merging), some time you don't have to wait until T+7, it will take off any time from now. The only condition we need to watch out is the price cannot drop below 2.34, otherwise the short term up trend will be ended here temporary.

Other stocks to watch
Harta - breaks new high again.
BIMB - supported above 14 days EMA with some buying interest.
CBSTech - watch for break out symmetrical triangle at about 0.55.
AirAsia - watch for break out 1.33 with volume

Correction Continue 23/11

Another minor correction for heavy weight counters but the second and third liners are encounterd a moderate to serious correction in the mid day. Losers beat gainers by 356 vs 174 with low volume traded.

Despite AirAsia having a good earning result, but this did not trigger many buyers to come in. The investors are very caution to buy any lower liners. There are many sellers waiting to sell this stock at 1.31. If the price breaks above 1.31, the chart just breaks out from the upper trend line. Keep watching for break out.

Mudajaya spikes up to 4.82 this morning but sellers quickly took profit and the price pulled back to 4.65. It did not trigger us to sell yet as we believe it will retest 4.82 if the market sentiment getting better.

Adventa confirmed broke out from the upper trend line and closed at 2.37. Good buy.

Supermax retest 4.10 but unable to sustain above it.

There are too many sellers waiting to sell Maxis above 5.38. Do not buy this stock at this time. We had reduced 2/3 of our positions on Maxis.

OUR HOLDINGs

Maxis went down 0.56%, closed at 5.34. Position reduced
Supermx went up 1.25%, closed at 4.06
Adventa went up 2.60%, closed at 2.37
Mudajaya went down 0.85%, closed at 4.65

STOCKS TO WATCH

Warning - keep side line if possible

Harta - Volume increase, price broke out.

Affin - Watch out for second round push out. Price must stay above 2.34.

Measat - Volume increase this morning.

CBSTech - Volume increase, for higher risk takers only.

AirAsia - Good news!

The price of AirAsia started to consolidate and correction since the early Aug this year. It was very quiet for a while after the Q2 financial result. Since then the stock price form a down trend channel. On last Thusday the price almost breaks out of the upper trend line. The strength was follow through on Friday and it broke out of the upper trend line however due a bad market sentiment, once again the price was retreated below the trend line.

The earning result was released after the market closed on Friday. The quarterly to quarterly EPS comparision was increased by 127% while the yearly to yearly comparision was increased by 255%. At the same time there was a news poped up that AirAsia plan to list in Thailand and Indonesia. Since AirAsia has a business in both countries, the IPO will help to promote the branding and the image of AirAsia. The outlook of AirAsia will be brighter in future and many analyst see this is a good move for AirAsia. Can the share price break out the downtrend channel is a next question.
IPO= Initial Public Offer
EPS= Earning per share

Please click the link to see the Technical View of AirAsia
Chart Pattern

Another correction day 20/11

FBM KLCI droped 2.29% today with lower volume about 858 Mil shares exchanged. Losers beat gainers by 366 vs 273. The correction is moderate today

Supermx faces a strong resistance at 4.10 and retreated below the support level 4.04 which broke in the morning. Now 4.04 became the immediate resistance.

Adventa confirmed stay about the trend line support at 2.26 but it unable to sustain above 2.35. We believe it will retest 2.35 again soon.

Any stocks for you to pay attention?
Please keep side line first as the market is under correction. We really cannot find any good stock to buy except Adventa is worth to look into it if it ables to sustain above 2.31 with buying interest. Of course there are a few small stocks like Salcon and Bjcorp are moving up but we don't recommend to buy them at this bad time. If the market come back on next Monday, we will post 1 or 2 counters on our mid-day update. Please remember to login after lunch.

Our stocks performance
Supermx went up 2.3%, closing at 4.01
Adventa went up 3.59%, closing at 2.31
Mudajya went down 0.64%, closing at 4.69
Maxis went down 0.92%, closing at 5.37

Also see more chart patterns on my other Blog
Chart Pattern

Watch List

IGB - Cannot sustains at 2.00 and 1.97 due to profit taking. Closing at 1.95. The resistance still at 1.97 and the support is 1.90.

Market getting a little better 20/11

The market was having a moderate correction in the morning but getting better toward the mid-day. The overall market volume is decreasing today with the KLCI marginally closed green. We expect the market will not collapse so soon but we need to trade with extra careful, buy only the good fundamental stocks.

Supermax broke out of the double hurdles at 3.97 and 4.04 surprisingly without much problem. The immediate resistance is at 4.10.
Adventa broke out of 2.26 and now facing a resistance at 2.35. We had bought some units at 2.27 after it sustains above the upper trend line.

Stock to pay attention
=================
1. Adventa - Can it breaks 2.35 and sustains above it? The support is 2.26.

2. IGB - Broke out 1.97 and now at resistance 2.00. Can it sustains above 2.00? Is the buying volume increasing?

Our Positions
===========
Supermx - price went up 3.83% and closed at 4.07. The resistance is 4.10 and the support is 4.04.
Maxis - price went down -0.55% and closed at 5.39. The resistance is 5.42 and the support is 5.32.
Mudajya - price went down -0.85% and closed at 4.68. The resistance is 4.75 and the support is 4.48.

Techinal View on FBMKLCI

According to the KLCI's weekly chart below, the resistance is getting stronger as it approaching the 1300(RED line) level which created at the begining of 2008. If it passes the 1300 level successfully, the next resistance level is about 1350 which is much more stronger than before. We predict there might be a major correction if it touches 1350. As you can see from the diagram, KLCI encountered a class C bearish divergence during Oct 09. The market suppose to fall at that time but it did not.
Right now you can see the RSI is getting weaker but it still stays above 70%. So we need to pay more attention if KLCI is approaching 1300 or 1350 level.
(I will share more what is called divergence signal on the related Blog)

Click to enlarge

Serious correction on the penny counters

As mentioned on my post few days ago, try to avoid the penny counters and the warrants which already pushed sky high. Today prove that I am right. Many penny counters and warrants like Mlab, Affin-wc, PJdev-wa, Abric-wa, LBAlum-wa, Silver-wa and many others lower liners are lossing more than 20% to 30%.

Although KLCL manages to push back to the positive zone but most of the lower liners are having a serious correction. We sold Annjoo as we expect the correction will continue tomorrow. We keep only the good fundamental counters like Maxis, Supermax and Mudajaya. Today market was very active but 1/4 of the volumes came from Maxis and many of them are selling activities.

As I said before we need to follow the Big Trend(FBMKLCI). If the Big Trend is in bad shape, we better stay away from the market.

Stocks to pay attention

Supermx - Immediate resistance is 3.97 and then 4.04. The support is 3.84. Closing is 3.92.

Warning: Stay side line or buy good fundamental stocks only

Our positions

Supermx +0.77% closing at 3.92
Mudajya +5.36% closing at 4.72
Maxis +8.4% closing at 5.42

Watch list

Airasia - Almost break out from the down trend channel. The resistance is 1.32 and the suppport is 1.27. Closing price is 1.31.

WCT - Had broke out from the decending trend line. RSI indicators above 50%. Immediate resistance is 2.70, 2.74 and the support is 2.60. Closing price is 2.68.

Adventa - Broke out the upper trend line today but it unable to sustain above the trend line due to the lower liners were having a heavy correction. The resistance is 2.26 and the support is around 2.08. Closing price is 2.23.

Waseong - Had broke from the Bolinger middle band, the immediate resistance is about 2.42 and the next resistance is at the double top 2.48. The support is at 2.34. Closing price is 2.41.

Counters with good earning result

Century - EPS up 185%, new PE is 7.95
PPEDANA - EPS up 111%, new PE is 12.34
YTLPower - EPS up 18%, new PE is 13.99
HSL - EPS up 41%, new PE is 12.04

Mudajaya pushed up again

Mudajaya was pushed up again and hit new high yesterday. Today it continues its uptrend again. Immediate support is 4.35 and very a strong support at 4.20. It is good to collect for long term investment. Please refer to the picture and the older post called Technical analysis on Mudajaya.
Click to enlarge

Time to collect Supermx

It is worth to look at this stock again. After reached new high 4.04 on 23/11, it started to correct and consolidate. It was well suppported at 3.42 and the stock price was slowly pushed up again. The price right now is 3.94, immediate resistance is 3.97. If you are willing to go for mid to long term, we feel that it is a good time to accumulate this stock now.

Click to enlarge

Market update 18/11 Wed

The market getting better toward the late afternoon session but the KLCL still loss 4.85 points. The market now consider as mild correction with gainers beat losers by 347 vs 296 with 945 mil shares traded. Annjoo getting a litttle bit active at about 4pm, we bought some of it at about 2.87. We still need to be cautioned.

New stock to watch

Keyasic - It had broken the trend line with higher volume today. Immediate resistance is 0.56, 0.585 and 0.63. Watch out for volume increase in the next 2-3 days because we need new money to replace the investors who had stucked at that levels and wanted to exit.

Adventa - watch out for volume grow and breaks 2.35

DIJACOR - Earning suprise, growth 2400%

Our Positions

Tchong + 3.16, hold
Annjoo +1.75, hold

Others in the watch list

WCT
Dayang
Sapcres
TA
Dialog
MRCB
KFIMA

Market Correction

The market is having a mild correction today and gave away 5.30 points at 1274.65. Losers beat gainers by 295 vs 230. Recently there are many warrant shares take turn to surge sky high and then drop like a falling stone later. We try to avoid buying this type of warrrant shares which had gone sky high as they are too risky. Obviously the market volume is decreasing today. We have to trade extra careful now, buy only the counters with good fundamental and buying interest. So we also need to ensure that we are NOT investing more 30% of our capital at this period of time until we saw a buying volume come back.

Dayang Fundamental View

Keep watching this stock, one of the stocks pick in the watch list today. OSK raise its target price to 1.66-2.33.
Dayang is one of Malaysia’s major topside maintenance providers. Having completed more than RM1.5bn worth of projects, the company has RM700m in orders in hand, which should keep it busy over the next 3 years. Its recent acquisition of 40% in Borcos will expand its fleet to 39 vessels by 2010. The potential risks are a slowerthan-expected recovery in O&G activities, lower charter rates, its inability to secure new long-term charters for its vessels and rising operation costs. We have a potential TP of RM1.66 based on 9x FY10 earnings, and the inclusion of Borcos will raise our TP to RM2.33. We have a NOT RATED call on Dayang.

Closing update 17/11 Tues

KLCI manages to push back to the green zone at the closing however the market is consider as a selling day as there were 438 losers vs 251 gainers. Immediate resistance is 1280 and the support is 1263. We had exited the market and sideline until tomorrow. If there is nothing wrong we will re-enter the market again.

We had spotted 4 new stocks for you to pay attention on them.

ANNJOO - Broke out of the ascending triangle and hits 54 months new high. The immediate support is 2.78 to 2.75. Good entry point if it ables to sustain above 2.78 with reasonable volume. We also need to ensure the regional and local markets are not in the serious correction before we made the decision.

DAYANG - Broke out the resistance 1.46 and the upper trend line with opened gap up this morning. It now hits 58 months new high at 1.48. The immediate support is 1.42 to 1.46. Good entry point if it ables to sustain above 1.46 with reasonable volume. However we need to ensure the regional and local markets are not in the serious correction before we made the decision.

TCHONG -Broke the resistance 2.50 and hits new high with volume increase. Good entry point above 2.53. Same as the rest, you need to ensure there is no major correction before you made the decision.

SAPCRES - Close to break out the ascending triangle. Good entry point if it ables to break and sustain above 2,31 with volume more than 40 days moving average. The closing price is 2.25. Just pay more attention on this counter.

For the case study on technical analysis on the above 4 counters, please visit the other Blog by clicking the link called Analyze the Chart Pattern on the right side. I will place the pictures on tomorrow onward.

Our holding - None

Other stocks to watch

WCT
SUCCESS
PARKSON
GENP
SSTEEL
WCT-WB
ANNJOO-WB

Stocks to watch 17/11 Tues

New stocks to watch

TA
Volume broke out, immediate resistance at 0.80 and 0.853. Price breaks above 0.853 with volume is a good entry point.

UCHITEC
We miss out this stock because there was very little volume on the last few trading sessions. This stock paid high dividen in the past. Right now is the earning season, the respond of the share price went up 9% with high volume could reflect another good earning result for this company. It broke the resistance 1.49 and closes at the highest price at 1.57. Before you buy this stock, made sure there is enough buying volume to push the price further, otherwise just side line.

MRCB case study, please goto the related Blog to view the picture.
Please click the link "Analayze the Chart Pattern" on the right side.

Existing stocks to watch

AFFIN - Hold
KENCANA - Hold
AMMB - Hold

New List for Radar Screen

MRCB
Melawar
PJDEV
IGB
Evergrn
AFG
KEYASIC

Closing update 16/11 Mon

FBM KLCI added another 7.35 points at 1278 with slightly more than 1 bil shares traded. The volume today is above 40 days VMA and this is a good sign for KLCI to move higher. The STC indicators maintain above 70%, this could be the turning point for KLCI to continue its uptrend. The immediate resistance is 1280 and the support is 1263. Breaking above 1280 could bring the KLCI to 1300 level.

OUR WATCH LIST PERFORMANCE

BIMB went up 8.73%, as mentioned on the mid-day update it faces a high resistance from 1.50 to 1.65 because there were many investors stucked at these levels during year 2007 from Aug to Nov. Now the chart look bad as the candle stick form a long shadow after closing, suggest that a heavy selling activities on this stock was going on. (drop from the watch list)

MBSB went up 6.8%, it was hitting a 1 year high at 1.15 this morning. We do expect a heavy selling pressure above 1.15. The closing pattern almost the same as BIMB. (drop from the watch list)

HLFG went up 1.49%, the price was retracted from the morning. Immediate resistance is 7.00. This stock is good for long term investors only. (place under radar screen)

HEVEA went up 0.68%, hitting another 52 months high this morning but the candle stick form a doji shape (+ shape), suggests that there could be a short term correction. Immediate resistance is 0.85, 1.07. If it can sustains above 0.76, it has a very high chance to break 0.85 after consolidation. (place under radar screen)

OUR HOLDING

AFFIN added another 12.82% today with heavy volume. We had exited 50% to protect the profit but still holding 50% of it. As long as the rumours of merging is still going on, we believe the momentum is sustainable as the candle stick shown no heavy profit taking yet. We will continue to hold for a while however we will sell it off when the chart pattern is unfavorite to us.

KENCANA up 2.08%, continue to hold. There is no selling pressure on this stock.

AMMB up 1.38%, continue to hold for longer term.

Technical analysis on Affin

We spotted Affin using the technical analysis tools on last Wed meeting. We asked our investors to watch for the stock price to break the resistance 2.19. If they wish to buy this stock, the price must sustains above 2.20 with buying volume. Most of our investors went in on Thursday and hold over Friday. The volume was dropping on Friday however the price still able to close positive(2.34) with some pulled back from the high 2.37. If the volume and the price continue to drop, we will cash out this stock first. But we will continue to hold for a while if it started to consolidate without any selling pressure.

Click to enlarge

Symmetrical Triangle Pattern

Refer to the chart pattern of KNM, it forms a symmetrical triangle right now. The upper trend line is the resistance while the lower trend line is the support of the stock price. As the chart approaching the tip of the triangle and finally it will break out either way. As you can see the volume is getting less during the consolidation. We normally do not buy a stock during this time. We will wait until it breaks out upper trend line with reasonable volume. Lets wait for a few more days.

Click to enlarge

Stock to watch 16/11 Mon

If US and regional market able to support the local market we can trade portion of our investments. Otherwise try not to buy any stock on Monday.

New stocks to watch
MBSB and BIMB both stock prices surged up with volume. What is the reason? Is the old deal between these 2 companies turn on again? Just watch them anywhere.

BIMB - Resistance 1.29, support 1.18.
MBSB - Resistance 1.05, 1.09. Suport 0.94.
HLFG - Price hit new high at 6.72. Resistance 6.72, support 6.48
Hevea - Turn on again and hit new high. Resistance 0.745, support 0.68

Existing stocks to watch
Kencana - The candle stick came out of the Bolinger band 20 with volume decreasing, just watch for profit taking. Cash out first if it cannot sustain. It needs more volume to push up the price.

AMMB - continue to hold for longer term.
Affin - Almost the same pattern with Kencana.

Stocks Place Under Radar Screen
========================
We remove Efficen, Tomypak and CBSTech from the list and add Time and Timecom to the list. Keyasic re-enter the list. Price almost break out from the decending triangle.

Daiboci
Century
Gpacket
Redtone
IGB
MRCB
Evergrn
Time
Timecom
Keyasic

Supermx

Supermx was very active in the morning session however sellers took chance to cash out. The price retracted from 3.97 and closed at 3.85. The candle stick form an inverted hammer shape at the closing. This indicates many sellers wanted to exit and normally it is not a good sign. Unless more new money or new buyers buying this stock on next Monday, otherwise it will be having a short term correction or consolidation. See picture below.

Click to enlarge

Closing update 13/11 Fri

As mentioned yesterday, KLCI will under consolidation or further correction in short term. Today volume further decrease to 789 mil shares and fell below 40 days VMA. We have to be more careful right now. Immediate support is 1270, 1258, 1248 while the resistance is 1280, 1300.

Short term investors had cashed out Mudajya and rubber stocks today.
We are holding the rest :
Kencana +1.27%
Affin +2.18%
AMMB (long term) +0.2%

Daiboci and Tomypak

Both company dealing with packaging materials. Good fundamental and paying good dividen. The only problem is liquidity, low volume. So it is good for mid to long term investment only.

Daiboci
Share price 2.22
PE: 7.74
Past 3 years dividen yield
2008 - None
2007 - 11.54
2006 - 7.55

Tomypak
Share price 1.82
PE: 4.32
Past 3 years dividen yield
2008 - 7.89
2007 - 2.38
2006 - 3.23

Stocks to watch 13/11 Fri

Existing Stocks to watch
===================
Mudajya - Hold
Kencana - Hold
Affin - Hold
Supermx - Hold or buy more above 4.04

New Stocks to watch
================
AMMB
======
Break new high today at 5.06. Support 4.94. Good buy if price continue with volume.

Adventa
=======
Price break out 2.23 but closed at 2.23. Buy if price sustain above 2.23 with volume.

Latexx
======
Another rubber glove company, buy if price break out above 2.70 or 2.82 with volume.

Sunrise
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Broke above Bolinger mid band with volume, good buy if closed the gap above 2.40 with volume.

Diaboci
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Broke above resistance 2.19, but close just above the resistance at 2.20.

Willow
======
Price broke new high at 0.36 after breaking the resistance 0.345, good buy if sustain above 0.345 with volume.

Stocks Under Radar Screen
=====================
Tomypak
CBSTech
Century
Gpacket
Redtone
IGB
MRCB
Evergrn
Hevea

12/11/09 Stock update

Mudjaya
======
As expected the stock open with gap up at 4.20 however some investors quickily took profit and the price pulled back to 4.08. Nevertheless due to a better than expected earning result, the stock price continue to climb and closed at 4.35. Resistance 4.38 and support at 4.08. The stock is overbought now and expect some profit taking first before it can move higher.

Supermx
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It broke 3.70 and closed at 3.87. The immediate resistance is 3.88 to 3.90. The next resistance level is 4.04. Support is 3.65, 3.52.

Affin
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It broke 2.20 and closed at 2,29. The immediate resistance is 2.32, support is 2.20.
The stock is overbought now and expect some profit taking first before it can move higher.

Kencana
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It broke 2.30 and closed at 2,37. The immediate resistance is 2.38, support is 2.30.
The volume is not remarkable today although the price is up. Cut loss below 2.27 if it pull back.

EonCap
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As mentioned in the forum last night, although the stock price up but the candle stick form a shadow. It did not break 6.03 to trigger us to buy this stock.

12/11/09 FBMKLCI update

FBMKLCI able to recover from negative to positive at closed. The KLCI now just slightly above the support level of 1270. The candle stick form a hammer shape after push up. This signal likely the composite index will continue its uptrend or consolidate at this level. The volume just touches 40 days VMA. The decrease in volume shown that the investors are getting more caution and started to sideline. If the volume continue to decrease tomorrow and next week, the market most likely cannot sustain and this is not a good sign for us. We like to see market consolidate rather than a pull back. Resistance 1288-1305, support 1250-1248.

Stock to watch 12/11 Thurs

Existing stocks to watch
=================
Mudajya -Should continue its uptrend, hold. Support 3.93
Supermx - Start collect slowly, cut loss if drop below 3.50
Kencana - Volume break out, agressive trader can start collect
Tomorrow if the price trend up. Buy above 2.30

New stocks to watch
==============
Affin - Volume break out, buy above 2.20. Cut loss below 2.10
EONCap - Buy if price break 603. Cut loss 5.75

Stocks under Radar Sreen
==================
CBSTech
Keyasic
Efficen
Century
Gpacket
Redtone
IGB
Evergrn
Hevea

KLCI Summary 11/11/09

FBM composite index loss -3.93 points but able to stay at the support 1270. The volume retracted however stilll stay above 40 days VMA. KLCI could be under short term collection or consolidation as today losser 451 vs gainers 248 and 238 counters unchange. We need a fresh good news and fresh money to push the market higher or else we will see a minor collection first. Nevertheless the market still consider bullish bias.

Stock update 11/11/09

Mudajya - confirmed break out (hold)
Harta - broke out 5.63 but pull back (sell)
Supermx - collect slowly, price above 14 days EMA . Cut loss at 3.50
Century - temporary profit taking - over bought, keep in radar screen
Kecana - Volume break out, buy above 2.30. Cut loss below 2.17
Adventa - uptrend not continue today, drop from radar screen
CBSTech - still at support 0.545, keep in radar screen.

FBM KLCI Summary

The CL broke 1270 resistance and goes as high as 1277 before closed at 1274. The volume is above 40 days VMA but many lower liners were under selling pressure. The KLCI candle stick formed an upper shadow line at closed. This signal a possible profit taking tomorrow. Nevertheless on technical view the KLCI still consider bullish bias. Now the resistance is at 1288 to 1300. The support is at 1270 and 1250.

Volume is getting less today

Although the FBMKLCI push up new high today but the volume is not remarkable. The losser are more than gainer now. Those who are holding a 2nd or 3rd liners with bad fundamental stocks have to be extra carefull now.

FBM KLCL hit new high

Hot! Hot! Hot! Today shows are from FBMKLCI components. FBMKLCI hit another new high again at 1276. The main contributor is CIMB which make another new high at RM13.04. Today most 2nd and 3rd liners are taking a breath. In turn the bulechips and some good fundamental stocks like Mudajaya are "goreng" up. Most institutes predict the FBMKLCI will pass the resistance 1288 and go as high as 1300-1350. After that there will be a correction. We are using the technical analysis tools day and night, if anything goes wrong we are able cash out on time before it collapes. Infact we like to see a big correction as the price of the bluechips are expensive now. This will create another chance for us to make money. So please visit this blog everyday to see my update.

Technical analysis Mudajaya

Mudajya having price broke out of decending triangle with volume on 9/11/09. The STC hit 90% signal a bullish trend on this stock. We expect the stock price will continue to trend up slowly if there is no major bad news in the regional market.

Click on the image to enlarge











Mudajya continue to trend up on Tuesday 10/11/09 but getting slower as the price approaching the resistance 3.92. We are looking at TP 3.90. If it able to break 3.92, it will hit another new high that determine the fair value and fundamental of this stock.

Click on the image to enlarge