MARKET OUTLOOK – US election outcome may spark big moves.
Bursa Malaysia declined in the wake of fresh liquidation pressure the past week, pulling the FBM KLCI below the rising trendline of the existing “symmetrical triangle” pattern, thus resulting a breakdown on the daily chart.
Unlike the previous breakdowns in the past, there was no evidence of unusual selling this time round. Instead, the broader market was somewhat calm although sentiment was cautious and the market was down.
Quite obvious, Bursa Malaysia has disregarded technical reading ahead of this week’s hotly contested US presidential election, which is highly likely to influence the global markets direction, including the local bourse in the immediate term.
Make no mistake about it. Global markets will react wildly to the final result of the White House race, similar to the big moves post Brexit outcome, but whether it is up or down this round, will depend on who emerges as the winner.
All is well for a Clinton win which will see equities reversing up and the bulls charging to higher grounds on frenzy buying as the upshot is clear that the bulls are in favour of her.
In the case of a surprise victory for Trump, there is a great possibility markets around the world will sustain the downward momentum on panic selling and should that happen, investors are advised to have an exit plan in place to avoid being caught.
To the upside, the key index will face signficant resistance at 1,680 points. A successful penetration of the 1,700-point psychological barrier will see the bulls becoming more aggressive, en route to 1,730 points and higher.
On the downside, initial support is seen at 1,630 points, A crack of the lower 1,600 points may drag the market lower, either to the 1,554-1,555 point band or the 1,500-1,503 point area.
By K.M Lee – The Star Biz 5/11/2016
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TradingSolution:
Bursa Malaysia Stocks
Monday 7/11/2016
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Global Market Stocks Trading with Cautions until United States elections
For October, FBMKLCI Index remain Weak & average volume <RM1.5b per day,
Latest Currency exchange is RM4.21
Trade COLD EYE STOCK PICKs
There are 30 stocks pick by cold eye, but which is the best for traders to choose?
For those who aiming for instant profit take, hit and run :
Not all stocks by cold eye can be traded because price of certain stock have too less liquidity, so usually trader will aim for high quantity buy and sell queue to trade to maximize their return :
RGB, large quantity queue at buyer and seller side, by 1 bid move, trader will get a lot of profit in terms of quantity and %
Penta, Hevea, Homeriz , opensys, solution,mmsv has just enough liquidity, its usd stocks, now currency is weaken these 5 best the best to trade as usd strenghten
Rcecap , its very high volatility stock, high risk high gain
Jtiasa, has call warrants can try trade for its call warrant
Airasia & AAX :
Expected to have opportunities in this month until Q3 result out, operator and many traders have joined the party,
The upcoming results are expected to have significant growth in 3QFY16 due to strong demand
Traders have opportunities to perform in AAX and few AAX call warrants such as AAX-cu cv c1 c2 cx…, fast in fast out
Retailers may try to hold airasia, it might hit above RM3
Investors are expected to sell it after 3QFY16 due to passenger service arges effective next year
Any Questions and Suggestions can Email to us : BursaButterfly@outlook.com
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UOBKH Retail Market Monitor 7 November 2016
FBMKLCI 1,648.24 (-0.16,-0.01%)
Support: 1,640, 1,634
Resistance: 1,679, 1,691
Top Gainers: Astro Genting Bhd (+3.04%), AMMB Holdings (+0.97%) and
Westports Holdings (+0.92%)
Top Losers: Astro Malaysia Holdings (-1.44%), Malayan Banking (-1.41%)
and YTL Corporation (-1.29%)
Last Friday, US stocks continued to be dragged down amid signs the
presidential race between the two candidates were narrowing.
Meanwhile, the US economy added 161,000 jobs in October, while the
unemployment rate fell below 5%. Although the job numbers were below
street expectations, traders still see a 71.5% chance of the US Fed to
hike in December, according to the CME Group’s FedWatch tool. Rising
stocks outnumbered declining ones on the NYSE by 1,597 to 1,512 and
121 ended unchanged.
Stocks to watch:
1) MHC PLANTATION; Technical Buy with +19.1% potential return
*Last: RM0.900 Target: RM1.04, RM1.09 Stop: RM0.855
*Timeframe: 2 weeks to 2 months
2) CEPAT WAWASAN GROUP; Technical BUY with +15.8% potential return
*Last: RM0.800 Target: RM0.905, RM0.955 Stop: RM0.760
*Timeframe: 2 weeks to 2 months
3) TITIJAYA LAND; Technical BUY with +12.1% potential return
*Last: RM1.82 Target: RM1.99 RM2.04, Stop: RM1.69
*Timeframe: 2 weeks to 2 months
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Logic Trading Analysis Channel:
BURSA MALAYSIA MARKET IDEAS MONDAY (07/11/2016):
FBMKLCI WAITING RESULT OF US ELECTION
Dear All,
The FBMKLCI closed little up at +0.16 point or +0.01% to close at 1648.24.
FBMKLCI last week is disaster as it fall continuously 5 day but perfect for a short position on the index and we have made pretty happy return from the fall. As for this week, it will be much more exciting awaiting US New Presidence Result.
DJIA although did not breakdown in a big way but in total of about 400 point down and breaking 18000 and the almost two month of sideways. This of course already indicating a downtrend for pre-election result.
As for this week, since all eye on US Election Result, I suggest we continue to wait the good fish swimming into our net at bottom. We love this kind of event that may put market into panic or even too much emotion.
No matter who win, the market remain goreng tetap goreng, short term effect will cause the market big swinging. And the big direction still very depending on any big move made by new President. So I am not too negative at any one win at the moment.
Since this week is crucial, we will only focus on strong moving stock like PESONA, TNLOGIS, EKOVEST, AIRASIA, MYEG and many more stock picks listed in premium groups that we are still waiting they drop into our wealthy net.
It’s almost time and be ready with us !
Welcome to our channel :
https://telegram.me/ltachannel !
Every Success just required a little bit more effort to make it happen this Monday!
“Goreng Tetap Goreng” !
Yours Sincerely,
Logic Trading Analysis
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The Bursa Analyst Channel:
Monday, 7-11-2016
Despite a weak market GLOBALLY and in MALAYSIA last week, we see all the construction sectors are very bullish, maybe can INVEST not trade in these counters as many and more projects are coming up. Construction: GKENT, KERJAYA, KIMLUN, GAMUDA, EKOVEST are top picks, seconds are GADANG (KYY is selling of his shares and does not recommend to buy anymore), WCT, IJM.
This week I will be expecting a REBOUND as current polls shows that CLINTON is leading against TRUMP. As much as I would like to see how AMERICA can be MADE GREAT again, however CLINTON’s foundation is ROCK SOLID. So for me I think Monday if any low price is a good deal. STILL, Take At your Own Risks !
Important stuffs to watch this week are the US PRESIDENTIAL ELECTION AND Us Energy Information Admiration Report on their Oil supply.
Oil prices are seen being bearish again once market predicts that they will fail to come to an agreement to cut oil supplies.
MYR/USD is trading around 4.2, and KLCI is lingering around 1650 points. We hope to see it back to 1660 by end of this week after market rebound !
Long term stocks:
DKSH, any good selldown is an opportunity to collect.
Stocks to watch this week 7 November to 11 November are:
PRESBHD : Last week reached a high of 2.40. anything between 2.20-2.25 is a good buy.
ECONBHD (construction): Support 1.79, TP 2.0, TP reached and closed 1.99. And then a lot of profit taking. This is a long term counter. Can continue to monitor to consider to add.
MMSV (LED and semicon in automotive inds): Support 0.64, Tp 0.705. (support broken.) will come back to this counter soon. Cold Eye did mention this counter.
TOMYPAK: Monitor for breakout at 1.65, more attention is at this counter already. It has broken out and staying above 1.65. MORE TO COME.
UEMS: (oversold) Support is at 1.08, TP 1.19. Currently at support, anything close below this support is a CUT.
KIMLUN (construction): support 2.12, TP 2.26 (touched). (bullish counter). TP2: 2.32
ECS: support 1.51 , TP 1.6. Still ok, as long as above support.
MIECO: (export) support 1.0. TP:1.14, already break out with ok volume. this counter weakening due to some strengthening of the Ringgit against USD.
Seems like AMERICA wont be GREAT, however Luckily our MARKET WILL BE SUPERMAN !
Follow The Bursa Analyst Channel for potential stockpicks and daily update.
https://telegram.me/TBAChannel
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