M+ Online Morning Market Buzz - 16 May 23

Dow Jones: 33,348.60 pts (+47.98pts, +0.14%)
⬆️ Resistance:  34500
⬇️ Support:  32300

FBM KLCI: 1,417.37 pts (-5.55pts, -0.39%)
⬆️ Resistance:  1460
⬇️ Support:  1400

HSI Index: 19,971.13 pts (+343.89pts, +1.75%)
⬆️ Resistance:  20700
⬇️ Support:  19300

Crude Palm Oil: RM3,527 (-RM89, -2.46%)
⬆️ Resistance:  3920
⬇️ Support:  3430

Brent Oil: $75.23 (+$1.06, +1.43%)
⬆️ Resistance:  79.20
⬇️ Support:  69.90

Gold: $2,016.49 (+$5.72, +0.28%)
⬆️ Resistance:  2110
⬇️ Support:  1960

M+ Online Technical Trading Stocks - 16 May 23

Stock Name: AAX (5238)
Entry: Buy above RM1.51
Target: RM1.68 (11.3%), RM1.80 (19.2%)
Stop: RM1.39 (-7.9%)
Shariah: Yes
Technical: Resistance breakout

Stock Name: POHKONG (5080)
Entry: Buy above RM0.94
Target: RM1.00 (6.4%), RM1.05 (11.7%)
Stop: RM0.905 (-3.7%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

Market update: The FBM KLCI declined for the fifth session as profit taking activities continues ahead of the debt ceiling negotiations in the US as well as pricing uncertainty in the political scene in the upcoming state elections. However, Wall Street ended higher prior to the US debt ceiling talks as traders hoped that a deal would be reached in the House of Representatives. Nevertheless, we still think the local market may stay sideways, while the upside is likely to be capped on the regional indices as traders may adopt a “wait and see” approach. Commodities wise, the Brent crude oil price traded above USD75, while the CPO traded hovered around below RM3,500. Gold price continued to stay above USD2,000. 

Sector focus: Given the uncertain environment, we expect traders to focus on defensive sectors such as telecommunication, utilities and consumer. Also, we believe the gold price could remain firm ahead of the debt ceiling negotiation, translating to potential trading opportunities within the gold-related stocks. 

Stocks to watch:
Technology: SFPTECH, KRONO, AWANTEC, 
Renewable Energy: TEXCYCL, SLVEST, 
Gold-related: POHKONG, YXPM, 
Consumer: MAGNI, NTPM, LAYHONG, 
Others: COASTAL, AAX, KRETAM, TANCO, MEDIA, REDTONE, SALUTE, YONGTAI

Source: M+ Online

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