M+ Online Morning Market Buzz - 22Sep21

Dow Jones: 33,919.84 pts (-50.63pts, -0.15%)
⬆ Resistance:  35700
⬇ Support:  33000

FBM KLCI: 1,530.44 pts (+2.55pts, +0.17%)
⬆ Resistance:  1600
⬇ Support:  1500

HSI Index: 24,221.54 pts (+122.40pts, +0.51%)
⬆ Resistance:  26000
⬇ Support:  23300

Crude Palm Oil: RM4,192 (+RM19, +0.46%)
⬆ Resistance:  4540
⬇ Support:  3960

Brent Oil: $74.36 (+$0.44, +0.60%)
⬆ Resistance:  77.70
⬇ Support:  71.80

Gold: $1,774.51 (+$10.35, +0.59%)
⬆ Resistance:  1850
⬇ Support:  1710

M+ Online Technical Focus - 22Sep21
Guan Chong Bhd: Well ready for expansion in 2022

Trading Catalyst
• Ranked as the fourth largest cocoa grinder in the world with total cocoa processing capacity of 257,000MT p.a.
• New cocoa processing plant in Cote D’Ivoire coming on stream tentatively in 2Q22 brings additional grinding capacity of 60,000MT p.a. and will improve operational efficiency by mitigating the impact from rising freight costs.
• Demand is expected to be resilient, premised to the recovery in economic activities with higher vaccination rates across the globe.
• Technically, Price has formed a bullish engulfing candle to breakout above the RM2.98 level, targeting the next resistances at RM3.09-3.18 with long term target at RM3.39.

Technical View

(i) GCB (S: RM2.82, R: RM3.09-3.18, LT TP: RM3.39, CL: RM2.81)

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

Source: Bloomberg, M+ Online

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