M+Online Morning Buzz 16 Oct 15: Dow+217.00 pts (+1.28%) @ 17,141.75 pts. The U.S. stockmarkets staged a strong rebound and rallied overnight as gains in the broader market were led by financial and healthcare sectors. Separately, the number of people who applied for first time jobless benefits fell by 7,000 to 255,000 last week, which was below expectations for claims of 270,000 – coinciding with the lowest level since 1973.

Meanwhile, the FBM KLCI continued to register its third gain for the week on the back of a positive market breadth and improved daily volumes. The MACD Histogram has extended another red bar, but the RSI is hovering above 70 (overbought). The immediate resistance will be envisaged around the 1,740 levels. Support is pegged around the 1,600-1,660 levels.

Sector Focus: ACE Market, Construction, Oil and Gas

ACE Market: OPENSYS, KRONO, MMSV, MIKROMB, SOLUTN
Construction: MUDAJYA, GKENT
Oil and Gas: BARAKAH, EATECH

Others: ZELAN, SCABLE

Potential Momentum Stocks:

BRIGHT (9938): Monitor for follow-through buying interest above the RM0.405 level. TP: RM0.44-RM0.52. SL: RM0.36.

CAREPLS (0163): Monitor for a follow-through buying interest above the RM0.49 level. TP: RM0.52-RM0.55. SL: RM0.44.

PADINI (7052): Price formed a breakout-pullback-continuation pattern above the RM1.44 level. TP: RM1.60-RM1.70. SL: RM1.40.

Source: M+ Online

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