KUALA LUMPUR: With momentum and trend indicators on the FBM KLCI turning bullish again headlined by a fresh daily MACD buy signal following last week’s strong sessions, TA Research said on Monday the only missing link will be a revival of strong buying momentum to improve market breadth and encourage stronger domestic institutional and retail participation to cement an uptrend resumption.

In its market outlook, it said the positive external tone from the extension of the US debt ceiling deadline to the year-end and easing US-China trade tensions should spill over to reinforce domestic sentiment.

“Significant index resistance remains at the recent high of 1,605, while1,620 and 1,640 should prove to be tougher upside hurdles.

“Immediate chart support is revised upwards to 1,550, next will be 1,520, with 1,500, 1,470 and 1,452, the 50% Fibonacci Retracement (FR) matching the Nov2020 low, as key supports to watch.

“Stocks wise, blue-chip utilities, technology, healthcare, construction and oil& gas related stocks such as Tenaga, TM, Hiap Teck, Inari Amertron, Pharmaniaga, MRCB, UEM Sunrise and Wah Seong should continue to attract bargain hunters anticipating rotation into economic reopeningplays going forward,” TA Research said.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *