Sideway trend

There's an old saying, "Comes May, sell your stocks and go for your holiday." Since entering 2nd May, Bursa has been in a profit taking and consolidation mood. As mentioned in previous post, the KLCI was expected to come down to close the gap at 1267, and it did.

Yesterday, the KLCI was basically in a sideway and yo-yo mode, strong support was seen at 1271 level, the low of Friday 2/5/08, and eventually the CI closed at 1274 forming a Doji. The appearance of a Doji after three consecutive down days marked the slow down of the selling pressure, and a possible reversal. Trend wise, the short term is still up and the medium term is sideway with an upward bias, the CI is expected to trade within a narrow range of 1260 to 1300 for the immediate term with an upside target of 1340 in the medium term. Overall volume traded for the last few session was low, at the region of about 500 million shares only, this clearly shows a lack of interests, however, there are some stocks that are quietly inching up. So, scan through the charts diligently and you may find stocks that offer good trading opportunities.

Some of the stocks to watch, AMMB, IGB, MRCB, Kencana, Sapcres, KPS, MAS.....

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.