CI heading south

On Monday, 020608 the CI was for most of the day holding around 1266 to 1268 point, but a last minute sell down push the CI down to close at 1262.49 (-13.61, -1.07%). Volume was very thin at 390 million shares. This indicates weakness and lack of participations in the market. As mentioned in previous post, the CI may slides further south to test the support at 1250, 1242 and 1233. The immediate 60 MA support is at 1255.

Last few days the market focus has been on those Property and Construction companies that have exposure in Vietnam, e.g . Gamuda, SPSetia, BJLand. Taking Gamuda as an example, from the lodgment to Bursa on changes of substantial shareholders, one can see that in actual fact the substantial shareholders has been selling their shares since 20May08, the big boys were doing it quietly at that period, however, the close on last Thursday which break the important psychological support at 3.00 was an indication of the selling down by the big boys. Hence, it is important to track the movements of the big boys. As there is no indication of bottom yet, Gamuda may move further down to test the downside target of 2.10. Don't try to buy low, any up move now is just a technical rebound, a chance for those who still hold the shares to sell. One will have to wait for a trend change before considering buying Gamuda.


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.