KLCI up, but market was actually down

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.

Taking a breather

Our KLCI had on last Friday (231107) mainly stayed in a range bound trading condition with CI fluctuating between 1345 and 1354 and close the day near the high at 1353.55, however, it never goes below the close on Thursday of 1344.16. Volume shrunk to a low 630 million shares which indicate a lack of interest. Gainers lead losers with 464 against 287. After 3 weeks since the correction started on 1st November, the KLCI has came down from its peak of 1423.81 to the 120 days MA support at 1340. If this support holds well, KLCI may take a breather from its recent correction and move into sideway consolidation with a range between 1340 and 1380. Hopefully the listing of Synergy Drive on the 30th November will bring some life to the market.

For the Singapore STI, it is also showing a temporary bottom signal with the low of 3306.53. STI will also goes into a sideway market with a range of between 3300 and 3500




The Hang Seng Index has also seen a temporary bottom at 25861. It may swing between 25500 and 28000 points






As for the Dow Jones Industrial Average (DJI), it closed last Friday at 12980.88 with a green Marubozu candle, indicating that the bulls are in control the whole day, trying to fight back to bring the index back near the 13000 level. Whether the bull will succeed in their attempt is really critical for the Dow, we will find out tonight.


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 sole your own responsibility. Do consult your dealer before taking any action.

Update

(Click to enlarge)
Regional bourses all open with a panic gap down on Tuesday morning following the falls of 218 points on DJI on Monday which closed at 12958, below the 13000 psychological support, this really cause the regional market to jitter, hence, the panic gap down opening. However, one can observed that the downward selling pressure did not last and the bull was fighting in the afternoon session. HSI and STI closed the day with a bullish reversal candle. HSI will have to go back above 28000 to maintain the medium term uptrend, and STI will have to go above 3500 to keep its long term uptrend intact. As for our KLCI, we lack a bit of strength, and closed the day off low at 1371.70 (-8.21, -0.59%) to form a bottom reversal black Hammer candlestick. Whatever it is, KLCI is now stuck in a sideway trading range of between 1360 - 1400, hopefully the listing of Synergy Drive will bring the KLCI above 1400, and that will bring life to our market again.















The DJI has on last night seen a roller coaster ride with the bull winning the battle for the day to close Tuesday at 13010, and the psychological support of 13000 was temporary defended. This also keep the DJI within the uptrend channel which must be defended, otherwise the whole world will purge.



Some of the stocks that may offer short term trading opportunities are CBSTech, GPlus and Tanco. However, one must be quick in taking the profit when you see it.


















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 sole your own responsibility. Do consult your dealer before taking any action.