The violation of the KLCI index's 1,600-pt psychologicallevel this week saw increasing market attention towards the bigcap stocks.Today, we take a closer look at  some ofthe index heavyweight  big-cap stocks, interms of identifying  the support andresistance levels, may shed some light on the sustainability of the index'srecent breakout. 

Sime Darby: Needto break resistance. We previously highlighted the likelihood of selling afterthe stock failed to violate the psychological RM10.00 in early March.Eventually, the stock retraced slightly and subsequently  found support at just above RM9.70. The newbottom was confirmed on Monday when it closed the highest in  three weeks, on a 'Long White' candle. Thus,positions can be initiated above RM9.70 with a close below as  the  stop loss. A close above RM10.00 is required to affirm the upward bias and the pricetargets are the gaps of March 2008 at RM10.70 and RM11.50. A failure to breakRM10.00 will not bode well for the index and price weakness is to be confirmedby  the violation of RM9.70. Expect strongsupport at RM9.20, the gap of early February.

Maybank: Testingpsychological level. The stock was highlighted in mid-March for its prospectsof scaling higher. The stock has moved favourably and positions can bemaintained as long as the stop loss below RM8.64 is not triggered. As expected,it is now testing the round figure RM9.00, also the 1-year high, and goodmomentum from the index's breakout should see the violation of the RM9.00level. A measured move based on the February rally could see the price go ashigh as RM9.30, while a strong move may even see a test of the psychologicalRM10.00 ' a measured move based on the May 2010-June 2011 rally. A failure tobreak this level will not augur well for the index and a close below RM8.64will confirm the price weakness. Support is expected at RM8.50 and theNovember-low of RM8.00.

Public Bank:  Holding above support. The index breakoutalso brought some life to  thisstock's  price  action. It has been trading listlessly forthe past  two months, holding aboveRM13.60  ' the year-long resistance thatwas violated in early February. But buying support was visible during itssideways move as seen from the consistent high volume, with the 50-day MAV linealso rising. In fact, the stock bounced off the MAV line twice in the past two weeks. Thus, positions can be initiatedabove RM13.60 with  the  stop loss on a close below. A closeabove  the  recent high of RM14.00 is required to confirmthe upside bias and a measured move based on the Dec-Feb rally could see thestock at RM15.30. A failure to break RM14.00 may not bode well for the indexand weakness will be confirmed if the stop loss is triggered. Look for supportat RM12.85, the 50% retracement of the Sep-Feb rally.

Source: OSK188