Dow Jones: 28,148.64 pts (+465.83pts, +1.68%)
⬆ Resistance:  28800
⬇ Support:  26800

FBM KLCI: 1,512.43 pts (+12.13pts, +0.81%)
⬆ Resistance:  1550
⬇ Support:  1460

HSI Index: 23,767.78 pts (+308.73pts, +1.32%)
⬆ Resistance:  24600
⬇ Support:  22800

Crude Palm Oil: RM2,721 (+RM13, +0.48%)
⬆ Resistance:  2910
⬇ Support:  2640

Brent Oil: $41.29 (+$2.02, +5.14%)
⬆ Resistance:  43.50
⬇ Support:  38.10

Gold: $1,913.53 (+$13.69, +0.72%)
⬆ Resistance:  1960
⬇ Support:  1840

M+ Online Technical Trading Stocks - 6 Oct 20

Stock Name: JHM (0127)
Entry: Buy around RM1.72
Target: RM1.78 (3.5%), RM1.87 (8.7%)
Stop: RM1.64 (-4.7%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: KOTRA (0002)
Entry: Buy above RM3.10
Target: RM3.20 (3.2%), RM3.30 (6.5%)
Stop: RM3.00 (-3.2%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

4Q20 Market Chat 
Embrace the winter – with glove and healthcare stocks  

Although economy is likely to contract in 2020, we think several stimulus measures across the globe should be able to cushion the downside risk and market players are expecting a recovery in 2021; similar case for Malaysia.  

For local exchange, we opine the trading activities will hover around gloves and related proxies and healthcare stocks without any meaningful drop in Covid-19 cases. Besides, trade diversions and trade catalyst should turn out well for 4Q20.  

For this quarter, we have picked:-  

(i)  Glove, glove proxies and PPE 
a.  CAREPLS (S: RM2.97, R: RM4.03-4.54, CL: RM2.90) 
b.  ESCERAM (S: RM0.97, R: RM1.38-1.60, CL: RM0.935) 
c.  DNONCE (S: RM0.60, R: RM0.755-0.86, CL: RM0.58) 
d.  PECCA (S: RM1.28, R: RM1.50-1.60, CL: RM1.25) 
(ii)  Plastic packaging and plastic-related 
a.  TOMYPAK  (S: RM0.71, R: RM0.87-1.00, CL: RM0.675) 
b.  LCTITAN (S: RM2.08, R: RM2.56-2.80, CL: RM2.00) 
(iii)  Trade diversion/ trade war theme 
a.  AME (S: RM1.82, R: RM2.12-2.27, CL: RM1.75) 
b.  WEGMANS (S: RM0.30, R: RM0.405-0.42, CL: RM0.285)  

S: Support, R: Resistance, CL: Cut loss  

Source: Bloomberg, M+ Online

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