M+ Online Morning Buzz - 5 Jan 16: Dow -276.09 pts (-1.58%) @ 17,148.94 pts. Following the rout in Chinese stockmarkets, the U.S. stockmarkets (S&P 500 & Nasdaq Composite) registered their worst start to a year since 2001, while for the Dow, the benchmark index registered its worst start since 2008. Also, the SPDR S&P 500 ETF Trust also recorded its worst session since 2001.

The FBM KLCI extended its decline sharply on the first trading day of 2016 on the back of a negative market breadth and heavy selling activities. The MACD Histogram has turned red, but the RSI still hovers above the 50 level. The immediate resistance will be envisaged around the 1,700-1,730 level. Support is pegged around the 1,660 level.

Sector: Technology, Plantation

Technology: ECS, SEDANIA, NOTION, ELSOFT
Plantation: BPLANT, TMAKMUR

Others: KKB, PENSONI, MIKROMB

Potential Momentum Stocks:

ELSOFT (0090): Price closed above the EMA20 level with higher volumes. TP: RM2.00-RM2.10. SL: RM1.85.

ECS (5162): Follow-through buying interest was seen above the RM1.56 level with improved volumes. TP: RM1.68-RM1.78. SL: RM1.50.

KKB (9466): Price broke above RM1.65 level with high volumes. TP: RM1.80-RM1.90. SL: RM1.62.

Source: M+ Online

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