Technical Commentary 04/01/10

KLCL continues its uptrend today by chopping up another 2.97 points at 1275.75. There are 579 up counters and 159 down counters. The KLCI index had broken out the short-term trend line of the symmetrical wedge. The RSI is approaching 70, STC %K at 100 and %D at 91. The Bollinger band expended 7% and the price is above the mid band. The MACD already confirmed crossing the trigger line. These indicators shown that the KLCI short-term direction is bullish biased. The overall market volume had increased by 87.6%, which contributed mostly by the 2nd and 3rd liners. In view of the increment of the market's volume, we are certain that the market participants had re-enter the market after the long holidays. This is good news for KLSE on the 1st market day of 2010. The KLCI’s resistance is at Fibo 1288 and the support is at Fibo 1257. Please see the chart below.

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 few weeks to come. If it able to break 1288, we saw a stronger resistances at 1300 and 1350.



Our Stocks
We recommend E&O on last Monday, today fly 9.5%. Uptrend still intact. Immediate resistance at 1.16 and the support is 1.10 and the 200 days MA at 1.08.

LBS and LBS-WA continue their unbeatable trend, they move up another 13% and 43% respectively. Did you catch them?

Most of the penny stocks we recommended are moving except Efficen and Mtouche. The chances for Efficen to go up still intact but Mtouche not looking good. The other stocks that recommended like LHH, Sunway, Hunzpty and TAS are moving up. The rest are consolidate, uptrend still intact. (Mtouche announce right issue with free warrant, price may turn around)

Gamuda formed a Bullish divergence signal
This is another example of Bullish Divergence. As you can see, Gamuda rebounded strongly today due to bullish divergence signal. The chart (price) form a lower low but the MACD fail to follow the price, intead it go higher and create a bullish divergence signal. Usually this signal is very reliable and that's why we like to spot this kind of pattern. We bought this stock at 2.60 as we noticed the MACD oppose the price. However we saw a high resistance range between 2.82 to 3.10. We will take profit first if it started to turn around. A higher volume is required to push the price higher. Please refer to the chart below

Other stocks to Watch

There are too many stocks started to move up and hard to mention all. However I want you to consider the sectors now, not really a teachnical analysis.

Watchout for water related counters as Jaks and Salcon are big up today. Others are KPS and KHSB are not moving much.

Wimax related group - Gpacket, Redtone, GHLsys, YTLE and Mtone

Steel counters - LionInd is moving, others like Kinstel, Annjoo, Masteel, CSCStel, Lsteel, SSteel and Wzsteel might follow.

Oil and Gas - Scomi, Bornoil, Ramunia/-WA and KNM/-CB already moving up, You may consider Petra, TGOFF, Waseong, Dialog, Ranhill, Alarm and Perisai. Perisai had form a nice rounded bottom and if it breaks 0.57 cents, it will go higher.