M+ Online Morning Market Buzz - 7 Jul 22

Dow Jones: 31,037.68 pts (+69.86pts, +0.23%)
⬆️ Resistance:  31900
⬇️ Support:  29800

FBM KLCI: 1,420.85 pts (-19.96pts, -1.39%)
⬆️ Resistance:  1490
⬇️ Support:  1400

HSI Index: 21,586.66 pts (-266.41pts, -1.22%)
⬆️ Resistance:  22700
⬇️ Support:  20900

Crude Palm Oil: RM3,897 (-RM158, -3.90%)
⬆️ Resistance:  5080
⬇️ Support:  3670

Brent Oil: $100.69 (-$2.08, -2.02%)
⬆️ Resistance:  119.10
⬇️ Support:  96.60

Gold: $1,738.86 (-$25.90, -1.47%)
⬆️ Resistance:  1870
⬇️ Support:  1700

M+ Online Technical Trading Stocks - 7 Jul 22

Stock Name: DRBHCOM (1619)
Entry: Buy above RM1.22
Target: RM1.31 (7.4%), RM1.39 (13.9%)
Stop: RM1.15 (-5.7%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: PTRANS (0186)
Entry: Buy above RM0.80
Target: RM0.855 (6.9%), RM0.885 (10.6%)
Stop: RM0.75 (-6.3%)
Shariah: Yes
Technical: Uptrend Intact

Market update: The FBM KLCI plummeted as selling pressure in consumer and plantation heavyweights weighed on the key index. Traders should watch closely on the Brent crude oil amid sliding commodity markets as market could be pricing in recession worries and the Brent oil is trading around the USD100 psychological level. Meanwhile, the CPO price violated below the key RM4,000 level, closing just below RM3,900 in anticipation of higher stockpiles in Malaysia, while the gold price extended its decline below USD1,750. While we think the local bourse is set for bargain hunting activities following mildly higher movement from Wall Street, we opine that the upside could be capped amid the falling commodities environment. 

Sector focus: Given the setup above, investors may want to avoid the commodities related sectors especially industrial products, energy, and plantation. Investors are likely to turn their head to banking, consumer, and food related counters. The technology sector may see buying interest after Nasdaq flashing sign of rebound.

Stocks to watch: 

Finance: CIMB, PPJACK
Consumer: PWROOT, QL
Building materials: CHINWEL, EMETALL
Technology & Telco: TIMECOM, TM, UWC
Chemicals: HEXIND, HEXTAR
Automotive: BAUTO, DRBHCOM
Transportation and Logistics: PTRANS, SYSCORP
Others: MALAKOF, SIGN

Source: M+ Online

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