Page 1 of 6 A comprehensive range of market research reports by award-winning economists and analysts are exclusively available for download from w w w .rhbinvest.comLocal Market Leads:♦Lifted by a rally across the regional markets amid signs of strengthening economic recovery in major Asian countries, the local market staged an early rally on Thursday. ♦China’s manufacturing activity rose more than expected to 57 in Mar from 55.8 in Feb. Meanwhile, the Bank ofJapan’s quarterly tankan survey of business sentiment showed confidence among the nation’s biggest manufacturers improved significantly to -14 in Mar, against -25 in Dec. ♦These lifted the negative impact from the overnight US markets’ retreat amid an unexpected drop in US private sector employment. ♦Back home, the FBM KLCI ended up 9.27 pts or 0.70% to 1,329.84, led by strong gains in MISC (+33sen), CIMB (+32sen) and IOICorp (+5sen). ♦However, turnover dropped further to 807m shares, from 961m shares on Wednesday. Market breadth turned positive with 423 counters up against 316 counters down. Technical Interpretations: ♦From an intraday low of 1,319.76 (-0.81-pt), the FBM KLCI staged a strong run-up on the back of strong buying momentum in the early session, before traded rangebound for the rest of the day. ♦By chalking up a huge bullish candle following a successful penetration of Tuesday’s high at 1,323.83, the index indicates a potential retest of Mar’s high of 1,334.34 soon. ♦If the index manages to overtake 1,334.34, the momentum will accelerate, hence lifting the daily trading volume and lead the FBM KLCI further to our medium-term target at 1,390. ♦For now, strong support is near the 10-day SMA of 1,312 and the important resistance-turned-support level at 1,300. Chart 1: KLCI Daily Chart 2: KLCI Intraday Technical Research Daily Trading Strategy Market Technical Reading Low Volume The Main Dampener To Short-term Trading Sentiment... M a l a s i a M A R K E T D A T E L I N E P P 7 7 6 7 / 0 9 / 2 0 1 0 ( 0 2 5 3 5 4 ) Please read important disclosures at the end of this report. 2 April 2010RHB Research Institute Sdn Bhd A member of the RHB Banking Group Company No: 233327 -M
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Market Technical Reading : Low Volume The Main Dampener To Short-term Trading - 02/04/2010
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8/9/2019 Market Technical Reading : Low Volume The Main Dampener To Short-term Trading - 02/04/2010
Page 4 of 6A comprehensive range of market research reports by award-winning economists and analysts are exclusively
available for download from w w w . r h b i n v e s t . c o m
US Market Leads:
♦ Buoyed by the upbeat readings on manufacturing and weekly jobless claims data, the Wall Street started the
second quarter on a bullish tone by kicking off a strong comeback on Thursday.
♦ The Institute for Supply Management (ISM)’s manufacturing activity index expanded for an eighth month in a row
by rising to 59.6 in Mar, in line with strong manufacturing data in overseas, such as China. Also, the weekly
jobless claims fell by 6,000 to 439,000 last week.
♦ This encouraged investors to scoop up stocks, even as ahead of the crucial Mar non-farm employment reports on
Friday and that the US markets and most of the European markets will be closed on Friday for Good Friday
holiday.
♦ Backed by strong US economic data that pointed to a sustainable economic recovery, the US light sweet crude oil
futures for May delivery advanced US$1.11 or 1.3% to US$84.87/barrel, its highest closing since Oct 2008.
Technical Interpretations:
Dow Jones Industrial Average (DJIA)
♦ Instead of extending its profit-taking activities, the US DJIA staged a surprise rebound by gaining 70.44 pts or
0.65% to 10,927.07 on Thursday.
♦ By bouncing from the 10,850 technical level with a bullish candle, this indicates a good chance of renewing a
fresh upswing leg soon.
♦ And a further clearance of yesterday’s intraday high of 10,956.39 will help it to trigger a new rally towards the
next upside target at 11,250. Solid support is now seen at 10,850, added with the 21-day SMA of 10,727.
Nasdaq Composite (Nasdaq)
♦ After fluctuating between a wide range of 2,383.77 low and 2,423.43 high, the Nasdaq Composite Index settled
at 2,402.58 with a 4.62 pts or 0.19% gain.
♦ Chart wise, the formation of a “star-like” candle points to a possible weakness ahead.
♦ But with the mild uptick in both the short-term momentum indicators, we believe it is likely to extend the current
rangebound consolidation at between the 21-day SMA of 2,376 and Mar’s high of 2,432.25.
♦ And for it to kick off a new rally towards 2,470, it has to take out Mar’s high of 2,432.25.
Chart 5: US Dow Jones I ndustrial Average (DJI A) Daily Chart 6: US Nasdaq Composite DailyChart 5: US Dow Jones I ndustrial Average (DJI A) Daily Chart 6: US Nasdaq Composite Daily
8/9/2019 Market Technical Reading : Low Volume The Main Dampener To Short-term Trading - 02/04/2010
Page 6 of 6A comprehensive range of market research reports by award-winning economists and analysts are exclusively
available for download from w w w . r h b i n v e s t . c o m
IMP ORTANT DI SCLOSURES
This report has been prepared by RHB Research Institute Sdn Bhd (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank Berhad(previously known as RHB Sakura Merchant Bankers Berhad). It is for distribution only under such circumstances as may be permitted by applicable law. Theopinions and information contained herein are based on generally available data believed to be reliable and are subject to change without notice, and may differ orbe contrary to opinions expressed by other business units within the RHB Group as a result of using different assumptions and criteria. This report is not to beconstrued as an offer, invitation or solicitation to buy or sell the securities covered herein. RHBRI does not warrant the accuracy of anything stated herein in anymanner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against RHBRI. RHBRI and/or its associated personsmay from time to time have an interest in the securities mentioned by this report.
This report does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectivesof persons who receive it. The securities discussed in this report may not be suitable for all investors. RHBRI recommends that investors independently evaluateparticular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment orstrategy will depend on an investor’s individual circumstances and objectives. Neither RHBRI, RHB Group nor any of its affiliates, employees or agents acceptsany liability for any loss or damage arising out of the use of all or any part of this report.
RHBRI and the Connected Persons (the “RHB Group”) are engaged in securities trading, securities brokerage, banking and financing activities as well as providinginvestment banking and financial advisory services. In the ordinary course of its trading, brokerage, banking and financing activities, any member of the RHBGroup may at any time hold positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers, in debt or equitysecurities or loans of any company that may be involved in this transaction.
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This report has been prepared by the research personnel of RHBRI. Facts and views presented in this report have not been reviewed by, and may not reflectinformation known to, professionals in other business areas of the “Connected Persons,” including investment banking personnel.
The research analysts, economists or research associates principally responsible for the preparation of this research report have received compensation based
upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.
Technical recommendation framework for stocks and sectors are as follows: -
Technical Recommendation:Trading Buy = Short-term positive opportunity spotted. It is an aggressive trading recommendation with a book to sellers’ price for short-term technical upside.Bargain Buy = Short-term positive but technical signals have yet to trigger a rally. Traders can park and queue for their desired entry level within a small range.Buy on Weakness = Short- to Medium-term positiveness anticipated, but technical readings are still negative. Traders can pick-up the stock for future rally.Sell on Strength = Short-term momentum still positive, Traders are advice to lock in profit base on current strength.Take Profit = Short-term target achieved. Traders are advice to exit before the technical readings turn bearish.Avoid = Risky situation in the short-term and high volatility expected on the share price. Traders’ best strategy is staying away until it stabilises.
Technical Time Frame:Immediate-term = short time frame within a contra period.Short-term = moderate time frame within two to three contra periods. For tracking purposes, we refer to 10 trading days.Medium-term = medium time frame usually refers to two to three weeks period. For tracking purposes, we refer to 20 trading days.
Technical recommendations are generally short-term in nature and may differ from RHBRI’s equity fundamental view and recommendation on the same company.
RHBRI is a participant of the CMDF-Bursa Research Scheme and will receive compensation for the participation. Additional information on recommendedsecurities, subject to the duties of confidentiality, will be made available upon request.
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