The listing of Sime Darby (or Synergy Drive as mentioned previously) on Friday, 301107, actually lifted the CI to open at 1408.09, a 33.77 points up. However, the CI did not continue with the up move, it only managed to climb to the intraday high of 1408.32, and thereafter was heading south direction to hit the low of 1391.72 and finally closed at 1396.98, up 22.66 points. The KLCI was up, but in actual fact the market was down, reason being Sime Darby alone, being the largest market capitalization counter on the Bursa Malaysia has contributed 23.40 points gains to the KLCI with its Rm2.10 gain. If we take away the contribution by SIME, the KLCI actually closed at 1373.58 (-0.74). Technically speaking, the candlestick formation coupled with a gap on Friday was not a good sign, despite the fact that CI was up, the general market actually took opportunity to take profit (or sell on strength), the confidence was not there yet. The general market sentiment was actually weak on Friday with majority of the counters down, losers lead gainers with 469 to 339, and volume done was only 970 million shares which indicates the general market lacks enthusiasm. Hence, CI may continue to slide down back into the sideway consolidation mode.
On the regional side, Hong Kong's HSI was back above the 28000 mark, and Singapore's STI has also climb back above the 3500 mark. These two marks was important for the respective indexes.
As for the DJI, it continued with its rebound from the recent low of 12,724 to close at 13,442. DJI may face some resistance at the 13,500 to 13,600 level.
From the movement of the indexes, most markets will move into the sideway consolidation phase, maybe this is a time to take a rest.
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 may 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 solely your own responsibility. Do consult your dealer before taking any action.
The KLSE had been on a quiet mood over the last week due to the many holidays. The KLCI continued with its down slides earlier part of the week as a continuation from the previous week's fall. As mentioned in the last post, CI gone down to 1382.44 to close the gap that was created on the 30th Nov due to the listing of Sime Darby. CI closed the week above the 1400 psychological level at 1403.56, however, the volume was low, averaging about 600+ million daily which is not very encouraging, probably due to the holiday mood.
