STOCK MARKET OUTLOOK: GOOD FOR APRIL 6, 2010
KLCI stocks stage powerful rally. Expect further rallies but take profiton rally and buy on dips as price get volatile.
On Monday’s close the KLCI was up by 5.81 points or 0.43% at 1341.75 on higher volume of 1.05 billion shares traded. Advancers led decliners by 403 to 322 with 289 stocks unchanged.
1. Syndicates are actively pushing stocks. Yes, banking stocks especially, and many GLC linked
companies, motor stocks, infrastructure stocks, and selective industrial stocks.
2. This is the bull run that is going to make you the money.
3. You should be feeling it already.
4. Notice your stocks are rising without much resistance.
5. This is one of the hallmarks of a bullish market. There just isn’t much sellers to trap you.
6. One stock is breaking out of a consolidation after another, only to fall back into a short consolidation and breaking out again. These short consolidations are known as “flags” or “pennants”. Some are “Triangles” but unmistakably they are continuation patterns that would lead to higher prices.
7. It is clear that this market is getting to move higher.
8. We have many stocks-to-watch today. They are: GAMUDA, JAKS, KKB*, PROTON, TCHONG*, AFFIN*, CIMB*, ECM, HLBANK*, OSK*, PBBANK*, RHBCAP*, TIMECOM, LMCEMENT, LIONIND*, SCOMI, WASEONG*, SUNCITY*, BJCORP, DAYANG*, FABER, PROTON-CB, TCHONG-CA, HLFG.
9. But of they stage a strong breakout, do take some profits, and buy back on dips (if they dip!).
10. Try not to buy in the early morning because they tend to correct back down by 10.30am. Buy either around 10.30anm or 3.30pm.
11. I don’t see much strong correction until they have moved to test 1397.
12. Expect more good rallies. This is the stretch to make money. You should be in the market by now. But remember to take profits.
13. The Ichimoku chart continues to stay bullish suggesting this market is going to go up.
14. The ringgit is strengthening against the dollar, which is why our stocks should be holding.
CONCLUSION: The KLCI is back up above 1300. There is a chance that KLCI can rally further. We are back in business as the KLCI is above 1308. Note the Ichimoku chart is still bullish.
Upside Targets: 1360/1436/1463/1524 (Revised targets on 5/3/10)
Immediate downside targets: 1300/1208/1136/1030 (Revised on 5/02/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10
KLCI: HOLD/FURTHER BUY/NEW HIGH SINCE 29/2/2008
GAMUDA: H/FURTHER BY/SYMMETRICAL TRIANGLE B.O.
HLBANK: H/STRONG BUY/ASCENDING TRIANGLE B.O./TGT 9.40/10.40
TIMECOM: ACCUMULATE: SYMMETRICAL TRIANGLE B.O./TGT 0.68/0.80
LIONIND: STRONG BUY/SYMMETRICAL TRIANGLE B.O./UP-GAP/TGT 2.19/2.65
