• The Small Cap index showed sign of reversal of its recent uptrend after the downtrend was taken out. On daily chart (see FIG#2), the Index is likely to retrace after facing a stiff resistance of 200-d SMA (17,045). Selling pressure is picking up at accelerating velocity as substantiated by reading from all oscillators.
• SLP Resources Berhad (SLP) manufactures, exports, and distributes plastic packaging products and plastic related goods as well as trades polymer products . In tandem with the negative view on Small Cap market, SLP’s share prices also show signs of reversal of its recent uptrend, substantiated by “Inverted Hammer” candlestick (see FIG#1).
• Moreover, reading from all oscillators showed that sellers are more aggressive than the buyers. Thus, share price is expected to retrace towards RM0.975, RM0.925 and RM0.89. However, any rebounds will see resistance RM1.08, RM1.14 and RM1.20.

Source: Hong Leong Investment Bank Research - 23 Apr 2015