As proxy for defensive sector play, we choose Consumer Staple and new-IPO company (growth consideration as added value). The price is the lowest range since IPO, so we think the value has emerged for accumulation and will monitor the progress.
We review FBMKLCI performance from 1983, as with other market, is on long term upward bullish trend with high volatility. Economic and financial cycle is obvious from the chart, with KLCI was responding to the bullishness and bearishness of the world financial environment. Suffice to say, 10 years cycle is imminent from the chart.
When FBMKLCI touched ATH during...
We opine that the gloves sector based on cumulative performance of Kossan, Hartalega, Topglove, Rubberex, Supermax and Comfort, is entering the distribution phase and already finished all compulsive wave for short term cycle.
This is only invalid if it breaks the ATH.
Strategy : Identify Buying Climax, BOR (Buy on Reaction). Sell at ST.
Will monitor closely.
Bursa volume of trading will contribute to its earning, hence justified the price increase.
The chart shows the trading ideas previously in expectation of Covid-19 demise. Low and bottom feeder.
Then due to stimulus plan, Bursa rebounded strongly, meeting the expectation. MCO contributed positively to market as a whole, and specific to Bursa.
We had seen...
After a while following through TSH since it rebounded from lowest due to Covid 19, it already break the resistance a few times.
Generally TSH is exhibiting an ascending channel accumulation pattern.
Successful breakout from 91 sen is seen sustainable.
Trading Plan :
Accumulate during TR, sell partial at resistance before breakout and partial above...
We opine that the crude oil will retrace and make a healthy correction as we see the completion of impulsive wave and currently making the correction wave.
As the resistance circa the gap is definitely strong resistance level, oil need to build up cause and momentum for another upward move.
For now, medium term is still in the trading range.
Of all sectors in Bursa Malaysia, only tech sector has breakout from its sideway range, and currently above its MA200 signifying bullish trend. However, it is still below the supply line considering previous two peaks.
EW5 can go as high as the previous peak, but for now, it has to retest and retrace for EW4 completion.