Dow Jones: 25,128.17 pts (-1861.82pts, -6.90%)
⬆ Resistance:  28200
⬇ Support:  24600

FBM KLCI: 1,557.25 pts (-18.02pts, -1.14%)
⬆ Resistance:  1630
⬇ Support:  1520

Crude Palm Oil: RM2,366 (+RM17, +0.72%)
⬆ Resistance:  2480
⬇ Support:  2260

Brent Oil: $38.55 (-$3.18, -7.62%)
⬆ Resistance:  44.3
⬇ Support:  37.1

Gold: $1,727.70 (-$11.00, -0.63%)
⬆ Resistance:  1780
⬇ Support:  1640

M+ Online Technical Focus - 12 Jun 20
Consumer Products & Services: Safe haven bets amid renewed volatility

Trading Catalyst
• Global equities have delivered strong gains in recent months, exceeding expectations as investors pinned hopes on the re-opening of economic activities.
• After a meteoric rise with valuations are now toppish and prospects of earnings recovery are still uncertain, renewed volatility kicks in over the past couple of days.
• We see the safe haven stocks (gold and silver-related) outperforming the negative market amid the higher gold prices that stood above the US$1,700 per ounce.
• The strides was also reacting to the US Federal Reserve gloomy economic outlook as benchmark interest rates are likely to be maintained at record low levels till 2022.
• With that, we see trading opportunities emerging from safe haven asset players like POHKONG and TOMEI following their recent breakouts.

Technical View

(i) POHKONG (S: RM0.46, R: RM0.57-0.60, LT TP:RM0.705, CL: RM46)
(ii) TOMEI (S: RM0.425, R: RM0.545-0.57, LT TP: RM0.60, CL: RM0.42)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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