It was a profit-taking day. The benchmark index, FBMKLCI, lost 7.86 points to 1,592.52. There were only 453 gainers in contrast to a higher number of losers of 531 while 444 counters traded unchanged on the Bursa Malaysia.
Apart from the banking and Oil & Gas stocks, which were in the limelight of late, the recently surged counters such as AirAsia Group (AIRASIA, 5099), Opcom Holdings (OPCOM, 0035) and MY E.G. Services (MYEG, 0138) also saw heavy profit-taking activities. Among these stocks, both AIRASIA and OPCOM have shown “Negative Signals” as per our Trainyew Trading System. As their share prices are currently way above their respective SuperTrend Supports, these stocks may consolidate for the time being. AIRASIA’s supports are seen at RM1.16 and RM1.09. As for OPCOM, RM1.20 is its immediate support. Worth mentioning, one of the recent Top 10 traded counters, Theta Edge (THETA, 9075), also saw substantial sell-down. Based on Bursa Announcement (https://www.pickastock.info/transactions?symbol=THETA), some of its substantial shareholders and directors have been selling the stocks since 12 October 2021. Our Trainyew Trading System has also issued a “Negative Signal” with an immediate support at RM1.20.
On a positive note, Metal Commodities (i.e. Steel and Aluminum) related counters may continue to see strong interest and upside momentum as noticeable “Volatility Breakout” patterns are observed.
All in all, the underlying technical correction of the FBMKLCI index is not a surprise as it was in the midst of testing its strong resistance of 1,595/ 1,600. Having said that the immediate resistance-turned-support of 1,580 (or its “Double-Bottom” measurement target) is expected to lend a good support, as the “Positive Signal” of our Trainyew Trading System remains intact. This technical view is also well-supported by Pick@Stock’s COWI Sentiment Index, which has made a new high since June this year. Moreover, no sign of weakness is observed from its technical picture, at least at this juncture.
