Market Trend - KLCI rebounded but weak

KLCI open with a gap up at 1375.03 points, up 5.64 points in response to overnight DJIA's gain of 120 points. However, the upward momentum of CI only lasted for about an hour and the market runs into profit taking after 10.00 am, and lasted throughout the whole day with a last 5 minutes effort to bring the CI up to close at 1376.93, registering a gain of 7.54 points. Market breadth registered 414 gainers and 445 decliners. On the daily chart, CI still trapped within a sideway range. The candlesticks show a small body candle with a longer upper shadow which indicates the upward momentum was suppressed. In view of the heavy delivery of Monday's volume on Thursday, it is expected that the market will further consolidate downward toward the 1350 area.

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However, some individual stocks are performing well, BHIC was up 0.44, closed at 5.10; Maybulk was up 0.30 with a strong breakout hitting an all time high of 4.82 and closed at 4.78. PPedana was up 0.22 at 4.24. These stocks and a few others, e.g. Bursa, KNM, Suncity are really showing the true nature of "The strong will become even stronger" and the true spirit of strongly trending stocks.



On the lower liners, as expected, Muiind and AMDB undergoes a correction due to heavy profit taking, which was anticipated from the shooting star candle formed on Monday. However, their overall trend is still intact.

Based on chart and technical analysis, Sweejoo and Complet both have good upside potential and is worth watching.



Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is sole your own responsibility. Do consult your dealer before taking any action