Monday, 11 July 2011

A Cloudy Day - FBM KLCI ends lower, retrace or rebounce?

FBM KLCI ends lower - The final updates from The Star that FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) ended lower today by 6.16 points to 1588.58 or equivalent to 0.39%. One of the reader, Mr. Fong is worry and ask if this is the sign of re-tracement after market is overheat on the past few weeks.

Malaysian exchange has been outperformed many of its Asian and European peers for the past few weeks. Thus, short term pull back for FBM KLCI is expected.

Japan's rally recovering from March quake faster than most economists expected, considered as one of the biggest gear and driver for local sectors. Psychological 10,000 level for Nikkei has been catch up, which is an immediate boost for the local market. Refer to FBM KLCI Futures To Trade Higher Next Week for details.

Another good story for FBM KLCI is it likely to hit 1,900 points by Mid-2012 per USB research. Refer to 
FBM KLCI Likely To Hit 1,900 Points By Mid-2012 for details.

Technical Chart Analysis
Let's take a look on today's chart. Most of the indicators still intact. Bull is temporary resting and will continue to run the show in a short while. Please refer to Technical Chart for Technical Analysis on FBM KLCI.

Bursa Trade Statistics vs FBM KLCI 
I had performed an analysis onto Bursa Trade and found an interesting observation. It is observed that FBM KLCI trend react towards Foreign investor's net buying. Please refer to below for details of Bursa Trade Analysis.

Foreign investor continue to collect our share as showing in the positive net buying (daily trade) since  6/10/2011. I had summarized the trade at below link. Feel free to bookmark it if you found it is useful.
Bursa Trade Analysis.

As short, consideration all of above, FBM KLCI should would continue to soar like eagle below and we are looking forwards the day it break 1600 historical high at very near future.

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More info on Stock Market to be published.....

Case Study - FBM KLCI retracement in place?

1. Trendline: Uptrend (Bullish)
2. Higher high & higher low: (Bullish)
3. ADX:Uptrnd with good momentum (Bullish)
4. MACD: Trending up (Bullish)
5. RSI: Above 70% (Bullish)
6. Sto: Bearish crossover and break below 80% (Bearish)

Conclusion: 5 Bull 1 Bear

Entry Price: 1601
Profit Taking: 1609, 1618
Cut Loss: 1581

Case Study - Return of BIMB after re-bounce at support?

1. Trend Analysis : Uptrend (Bullish)
2. Candle Stick Analysis: Inverted Hammer -- Pending Confirmation (Bullish)
3. Hihger high and higher low: (Bullish)
4. ADX: Uptrend with good momentum (Bullish)
5. MACD: Trending high (Bullish)
6. RSI: Re-bounce from 70% to higher (Bullish)
7. Sto: Touching 80% (Bullish)

Conclusioin: 7 Bull 0 Bear

Entry Price: 2.41
Profit Taking: 2. 38, 2.48, 2.57
Cut Loss: 2.26

Gossip - MRCB under value? Can she soar high with UOB report?

One of the reader ask, why there is no movement from MRCB since the buy call on 6 July'11. Well, my suggestion to him is stay tune. Most of the indicators we used to justify the buy call are still intact! Most importantly, it's Fair Value is underestimated. MRCB is just like the bird below, struggle to survive from dipping under the water.

Hopefully with the report from UOB could help our little bird move out from water and SOAR high!!! Thus, for those who has locked this counter, please be patient and just follow our trading plan. Let's the "Miss Bee" below brought a sunny day for us tomorrow! Don't worry, be happy!

For those who would like to visit the buy call for MRCB on 6 July'11. Below is the link:

UOB Kay Hian FV for MRCB at RM3.02

KUALA LUMPUR:  UOB Kay Hian Malaysia Research is maintaining a Buy on Malaysian Resources Corp Bhd (MRCB) at RM2.32 and has a fair value of RM3.02 as it expects MRCB to benefit from more redevelopment projects.
It said on Monday, July 11 MRCB’s share price has crept up with volume last week, from RM2.21 to RM2.32.
“We continue to expect more positive newsflow in 2H11 for MRCB, particularly on the redevelopment of the Rubber Research Institute land in Sungai Buloh (GDV: RM10 billion), “River of Life” project worth RM3 billion for phase 1 and also more sizeable land deals in Selangor, which will allow them to develop at least RM4 billion to RM5 billion of GDV in the future.
UOB Kay Hian Malaysia Research said if successful, the acquisition would lift its total GDV to a whopping RM12b. We maintain BUY with a RNAV-based share price of RM3.02.

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