Monthly Archives: May 2013

Stock to Watch: Pantech [5125]

Looking at the chart of our local index, we can see that the index is now consolidating within a 28 points range (Resistance of 1793; Support of 1765). A spinning top was formed on Thursday with slightly greater volume than the previous days, signalling a possible reversal. In fact, with both the Hang Seng (Hong Kong index) and Nikkei (Japan index) forming long lower-tail spinning top with high volume, the possible reversal of these two leading market in Asia could potentially pull our index up on Monday, thereby creating a better sentiment for shares to reverse/ move higher.

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Having said that, there are still plenty of oppportunities for us to tap on and among them is the popular oil and gas small-cap, Pantech, which would be the focus of today’s discussion. While the expected better sentiment on Monday could turn the share price around, thereby taking away the opportunity to profit, it would be best if we could get ourselves ready in the event that the expected better sentiment does not materialize (Possible since at the time of this writing, US index is falling).

Stock to Watch: Benalec [5190]

Led by panic selling across Asia market (WHY? Click here to find out), KLCI gapped down by 15 points in the evening session, widening the difference in the number of gainers and losers. Instead of making an analysis on the local index, we shall discuss on the price movement of Benalec, a good stocks to trade because it is one of the most “obedient” shares that respect all the main supports and resistances. Also, since the share price has been moving sideway for 2,3 years (long-term trend), its effective trading range is clearly provided and thus the price movements are more predictable in the intermediate term. Let’s begin our analysis.


KLCI: The Inevitable Correction

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At last, after more than a week of bullishness, the market formed a bearish engulfing pattern yesterday (as indicated by the red arrow) and today our local index lost 16.31 points, with the number of losers outnumbered the gainers greatly. KLCI was dragged mainly by three of the heavyweights – Maybank [1155], Genting [3182] and IOICorp [1961]. Moving on, we need to watch a few support levels closely (1752 and 1743) as there is a high chance that the index will rebound at these levels. A break of the 1743 support will send our composite index down to the resistance-turned support of 1718, which is an ultra-strong support level. Let’s take a brief look at the two “culprits” that caused the fall of our index today and see whether there’s any profit opportunity. We start with our Gaming giant, Genting [3182].

KLCI: The Biggest Rise In The History of Malaysia

Today is a remarkable day with the index closing 57.25 points higher from last Friday’s closing, creating the biggest one-day gain in Malaysia’s history, no thanks to BN’s victory in the latest general election. The index touched the high of 1824.44 in the morning before falling sharply to the 1740+ level and had been trading sideway since, within a 12-points range for the rest of the trading session. The extreme movement of the index had caught a lot of investors by surprise and most are unsure of what to expect next and what to do with their current position.

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KLCI: Pre-Election Dip

On the last trading day before the long-waited general election, the local index took a dive and broke the 1700 psychological support. The index moved down by as much as 28 points before recovering by around 10 points to close at 1694.77. This came after a divergence in the true sentiment of the market with the index movement (one of many of the signals under Sentiment Analysis) appeared on the 30th of April, sending strong signal of bearishness.

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