Two weeks ago, a friend came to see me in the office to discuss about "share" matters. I told him that some counters offer good trading opportunities, but he mentioned that he was told to sell everything before Parliament starts, so he would not buy anything. I did not insist, but I told him that trading is about following market trend, not about listening to unfounded rumours or comments. Of course he didn't buy those counters that I mentioned (he would now say aiyah! missed la! as usual). A week later, another guy (somebody high in position in my office) also mentioned that he was told to sell everything before Parliament starts, I laugh again. Today, the Parliament started, I didn't see our market disappearing or plunging to a new low, instead, many counters are doing well, and I have been locking in handsome profits. This is not to boast, but just to tell a fact that, following the chart is always wiser than listening to all kinds of advices from those commentators in the street (everyone has a mouth, they can say anything they like).The market was very slow and quiet today (Monday, 280408). KLCI was up 7.23 points, in which a last minute effort push the CI up by 3 points. Volume was very thin at 486 million shares traded. This shows the market lacks participations from the majority. Maybe the market is waiting to see any surprises after the Parliament starts. On the weekly chart, our market has actually ran up for three weeks since 7th Apr, and has touched the short term target of 1300, and maybe it is time to take a breather. The 60 days MA is posting some resistance to the CI, however, the short term 30 days MA has started to point northeast indicating short term up trend. The very short term 5 days MA is giving some support to the CI. If the CI is able to break through the 1300 psychological resistance, then it may test the next target area at 1340. On the other hand, if the market continue to stay weak, the CI may come down to close the gap at 1267.
Some of the stocks to watch are: Parkson, Puncak, Kinstel, Zelan, Kencana, Sapcres, Sunway and...
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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