Bursa Malaysia closed much lower today, in cautious trading, ahead of third quarter gross domestic product (GDP) data release on this coming Friday. The benchmark FBMKLCI index closed 11.38 points lower at 1,524.03, which is at its lowest closing since Oct 1. The FBMKLCI component stocks were overwhelmingly in the negative, with 24 losers, 5 gainers and 1 closed unchanged. Broad market wise, market breadth is obviously negative with losers overshadowing the gainers on a ratio of 653-to-311 stocks. From Pick@Stock’s Market Summary page, it is clearly seen that Energy (or Oil & Gas) sector was the only sector in green while other sectors were all in the red.
Despite all these negatives, Tafi Industries (TAFI, 7211) continued its uptrend and overcome its previous resistances of RM2.75-RM2.95 before closing at its “limit-up” level of RM3.58, surged 81 sen higher despite lacking of fresh news. Support area is now seen at RM3.05-RM2.95.
Another counter that appeared in Pick@Stock’s “Today Keywords” is Wong Engineering Corporation (WONG, 7050). The stock closed 14 sen higher at RM1.84. The Company has recently announced a 6-for-5 bonus issue. Chart-wise, the stock could have staged an upside volatility breakout with the sign of Bollinger Band expansion. In fact, TrainYew’s Trading has issued a “Positive Signal” a few days ago. A surge above the TrainYew SuperTrend resistance of RM1.85 will reinforce this technical picture. Higher resistance is seen at RM2.15/17.
EP Manufacturing (EPMB, 7773) was another stock under “Today Keywords”. The stock closed 19½ sen higher at RM1.14. The Company has recently announced that it has just completed a private placement following the listing of and quotation for 24,766,000 Placement Shares on the Main Market of Bursa Securities on 3 November 2021. Technically speaking, while the stock is trending up well above TrainYew’s SuperTrend, it is somewhat “Overbought” with high RSI reading.
In short, no clear reversal signal is seen at the moment. The FBMKLCI index is struggling around the 1,525/20-support area. A convincing break will put 1,500-psychological support level at risk. Nonetheless, it is still hopeful to see a quick rebound from here as the index and the Pick2Stock’s COWI Sentiment Index are hovering near their respective “Oversold” territory. The COWI Index is currently hovering at SuperTrend support line.
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