Hook downs seen on technical momentum indicators for the FBM KLCI following last week's choppy trading sessions suggest that the current profit-taking consolidation is likely to persist, while the market await positive domestic catalysts to provide upside trigger for further gains ahead. Strong trading momentum and sustained buying interest in the property and construction sectors will be key for spillover to other sectors and encourage rotational trading plays going forward. Meanwhile, given recent strong U.S. economic data which raised concerns interest rates could remain high for an extended period, even if the Federal Reserve kept rates unchanged in this month's policy meeting, and the U.S. Consumer Price Index reading for August this week amid rising oil prices, cautious sentiment should prevail to cap upside potential.
Immediate index support cushioning downside is retained at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance will be at 1,465, then 1,470, with the 1,490/1,500 resistance area as higher resistance, and stronger upside hurdles seen at 1,514, the 200-week moving average, and 1,552, which is the 50%FR of the 1,896 high (April 2018) to the 1,207 low (March 2020).
As for stock picks, key telcos, oil & gas and semiconductor players like Maxis, TM, Bumi Armada, Dialog Group, Inari Amertron and Unisem are most likely to attract bargain hunters on weakness for rebound upside and longer term upside potential ahead.
Source: TA Research - 11 Sept 2023
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TTVHBCreated by sectoranalyst | Apr 26, 2024
Created by sectoranalyst | Apr 26, 2024
Created by sectoranalyst | Apr 26, 2024
Created by sectoranalyst | Apr 26, 2024