The KLCI closed weak at 1403.41 on last Friday(141207) after it hit the record high of 1449.70 a week ago. It was down 30.63 points week-on-week. Market players took the opportunity to lock in their profits. Stock markets worldwide was down since 121207 due to a rate cut by FED that was lower than what was anticipated by the market. Daily volume of Bursa Malaysia has shrunk to around 600 to 700 million shares, which is a bad sign indicating a weak market, and more correction ahead is anticipated. In view that 1423 did not hold, and CI actually penetrated 1400 to the low of 1396.45 before a last minute push up to close at 1403.41, KLCI may further correct downward to the 1380 level to close the Gap that was created due to the listing of Sime Darby. Strong support may be found around 1350 and 1330 level. If these two level could not hold, then the KLCI will actually turn into bear phase. Hopefully the year end window dressing activities could help CI maintain at the current level.
Stock wise, there aren't many stocks that are good for trading. Some of the strongly trending stocks are BJCorp, BJCop-LC, and BJland. Gamuda shows a strong reversal up due to the revival of the double-tracking project, with a potential target of 5.10.
To all my Muslim readers, I wish all of you Selamat Hari Raya Haji; and to my Christian readers, Merry Christmas.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.
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