Dow Jones: 27,665.64 pts (+131.06pts, +0.48%)
⬆ Resistance:  28800
⬇ Support:  26900

FBM KLCI: 1,504.85 pts (+14.73pts, +0.99%)
⬆ Resistance:  1560
⬇ Support:  1450

HSI Index: 24,503.31 pts (+189.77pts, +0.78%)
⬆ Resistance:  25500
⬇ Support:  23800

Crude Palm Oil: RM2,811 (-RM3, -0.11%)
⬆ Resistance:  2950
⬇ Support:  2740

Brent Oil: $39.83 (-$0.23, -0.57%)
⬆ Resistance:  43.30
⬇ Support:  38.60

Gold: $1,940.55 (-$5.54, -0.28%)
⬆ Resistance:  2010
⬇ Support:  1870

M+ Online Technical Focus - 14Sep20
Healthcare sector: Signs of turning

Trading Catalyst
• Given that there are no signs of abating in the new numbers of Covid-19, we see demand for personal protective equipment (PPE) to remain sturdy overtime.
• According to Statista (German market data specialist), global PPE market is expected to balloon from US$52.0bn in 2019 to US$93.0bn in 2027.
• Concern over the new number of Covid-19 cases (more than 200,000 daily since 20th July 2020) ensures demand remain intact.
• The retracement in gloves-related stocks in recent weeks suggests that weakness is likely to be overdone, primed for recovery with valuations turning more compelling at current juncture.

Technical View

(i) COMFORT (S: RM3.06, R: RM4.35-4.72, LT TP:RM5.17, CL:RM3.05)
(ii) CAREPLS (S: RM2.25, R: RM3-3.3, LT TP:RM3.78, CL:RM2.24)

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

Source: Bloomberg, M+ Online

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