M+ Online Morning Market Buzz - 21 Dec 23

Dow Jones: 37,082.00 pts (-475.92pts, -1.27%)
⬆️ Resistance:  38400
⬇️ Support:  36400

FBM KLCI: 1,464.56 pts (-1.11pts, -0.08%)
⬆️ Resistance:  1510
⬇️ Support:  1420

HSI Index: 16,613.81 pts (+108.81pts, +0.66%)
⬆️ Resistance:  17400
⬇️ Support:  16000

Crude Palm Oil: RM3,796 (+RM18, +0.48%)
⬆️ Resistance:  3890
⬇️ Support:  3590

Brent Oil: $79.23 (-$0.02, -0.03%)
⬆️ Resistance:  82.30
⬇️ Support:  73.00

Gold: $2,031.39 (+$13.16, +0.65%)
⬆️ Resistance:  2090
⬇️ Support:  1980

Market update – 21 Dec 23
Time For A Retracement

The FBM KLCI snapped a 7-day winning streak after hitting the resistance around 1,470 as profit taking activities were noticed within the banking heavyweights. Similarly, Wall Street upward momentum was interrupted, halting a 9-day surge despite consumer confidence index increased to a five-month high in December amid growing optimism about the current and future business conditions. The stronger consumer behaviour may provide clues that the economy may avoid a recession next year. Meanwhile, the traders will monitor the upcoming data such as the US GDP and PCE price index to determine the market’s direction going forward. At this juncture, we expect local market movements to turn negative amid profit taking activities from Wall Street. On the commodity markets, Brent oil prices traded near USD80/bbl as traders priced in the elevated tension in the Red Sea. 

Sector focus: As the retracement started in the US, we expect the Technology sector to take a breather at least for today. Meanwhile, following the cabinet reshuffle that includes a new “Minister of Digital”, oversee by Gobind Singh Deo, the Telco & Media sector has been rising for the 9th session, hence we see more upside potential over the near to mid-term. In view of KL-SG HSR to be revived next year, we like the Construction, Building Material and Property sectors.

Stocks to watch:

Financial: BURSA, RCECAP
Technology: INARI, KGB
Plantation: TAANN
Construction: SUNCON
Consumer: CCK
Property: SUNWAY
O&G: PANTECH

Source: M+ Online

M+ Online Technical Trading Stocks - 21 Dec 23

Stock Name: TAANN (5012)
Entry: Buy above RM3.600
Target: RM3.700 (2.8%), RM3.750 (4.2%)
Stop: RM3.500 (-2.8%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: KGB (0151)
Entry: Buy above RM1.900
Target: RM1.950 (2.6%), RM2.000 (5.3%)
Stop: RM1.850 (-2.6%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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