Support: 1,768 to 1,792Resistance: 1,794 to 1,826
Strategy: The FBM KLCI inched up 4.65 points WoW as some local nibbling activities cushioned foreign selling. The index closed at 1,794.52 last Friday. Volume ranged from 1.50b to 2.32b shares traded. The obvious support areas for the FBM KLCI are in the 1,768 to 1,792 zone. The key resistance levels of 1,794 and 1,826 may witness some heavy profit-taking activities.
The index consolidated in a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above 936.63 (Wave a/B) in Apr 2009. Its Wave b/B low was 836.51. We traced out a Wave C/B (of the Flat 3-3-5 variety) rebound phase and revised our Wave Count of a Wave v/B correction rise to 1,826.22. The current extended Fifth Elliott Wave (EW) of the major Flat v/C/B-leg correction from the 801.27 low to 1,826.22 (on 6 May 2013) had obvious bearish divergence signals despite the index’s rise to all-time highs after GE13. The FBM KLCI is in overbought and divergent territory and the EW count defined a stalled uptrend at 1,826.22. The index’s next few key swings were 1,723.74 (low), 1,811.65 (high), 1,660.39 (low), 1,805.15 (high) and 1,759.66 (low). The current rise from the 1,759.66 low may try for a re-test of the 1,820, 1,822 and 1,826 levels eventually after the present profit-taking phase. The index held at its first downward target of 1,780.54.
Some BUY stocks are: APOLLO, BRAHIMS, COASTAL, DAIMAN, DAYANG, DIALOG, DSCSOL, EITA, FIAMMA, FOCAL, FURNWEB, GENTING, HARTA, HELP, HIBISCS, HLCAP, HUPSENG, INARI, INFOTEC, KIANJOO, KULIM, MAGNUM, MATRIX, MISC, MKH, MPI, MYEG, OFI, ORNA, PERISAI, PIE, PLENITU, PLS, POHUAT, PUNCAK, QL, SOP, SPROP,
TNLOGIS, UMSNGB, VITROX and YLI. Some SELL stocks are: AIRASIA, HLFG, KSL, LIONCOR, MAHSING, MRCB, RHBCAP, SCIENTX, SHANG, SHELL, SUPERMX, TECNIC, TROP, UCHITEC, WCT and YNHPROP
by Maybank IB