Trading sentiment in Bursa Malaysia remains lackluster. The benchmark FBMKLCI index was hovering marginally above the 1,520-support. The index dipped 3.29 points and closed at 1,520.74. While broad market saw improvement with lower numbers of losers, the gainer-to-loser ratio of 428:502 is still unfavorable. Nonetheless, there were more sectoral indices showing positive daily change. From Pick@Stock’s Market Summary page, it is clearly seen that Energy, Construction, Utilities and Industrial Product sectors were in green.
Individual stock wise, Tafi Industries (TAFI, 7211) continued to surge and making an all-time high at RM3.84 after responding to Bursa Malaysia’s Unusual Market Activity (UMA) query. The furniture manufacturer said it was in the midst of deliberating on a corporate transaction, which many market participants expect this will be a Bonus Issue, to enhance the tradability of its shares. Nonetheless, this piece of “good news” could have well-reflected in its swift run as its Relative Strength Index (RSI) has entered into a heavy “Overbought” territory.
Another counter that appeared in Pick@Stock’s “Today Keywords” is Solution Group (SOLUTN, 0093) despite absent of price catalyst. However, it is believed that the surge of 20½ sen to 63 sen could be due to its previously “Extreme Oversold” technical condition. Prior to this strong rebound, the RSI reading of the stock was recorded marginally above 10. In fact, TrainYew’s Trading System has issued a “Positive Signal” a days ago. A surge above the TrainYew SuperTrend resistance of RM0.665 will suggest a trend reversal (from the underlying downtrend). Immediate support is seen at RM0.555/50.
It is also believed that the surge (+36 sen to RM1.88) of Malaysian Genomics Resource Centre (MGRC, 0155) could also due to its “Extreme Oversold” technical condition as the stock price plunged from its high of RM2.71 since 1 November 2021.
EP Manufacturing (EPMB, 7773), on the other hand, saw profit-taking pressure after its strong move yesterday. This is not a surprise, as the stock has been trading in an “Extreme Overbought” technical condition. Today, it was reported that EPMB and Malaysia Automotive Robotics and IoT Institute (MARii) have signed a memorandum of understanding (MoU) to explore plans to produce and localise two-wheel and four-wheel electric vehicles (EVs).
In the absent of clear reversal signal, the FBMKLCI index continues drifting lower and putting 1,520-support at risk. A convincing break will see the index sliding further to the 1,500-psychological support. At the same time, the Pick@Stock’s COWI Sentiment Index has also issued a “Negative Signal” and pierced below SuperTrend support line.
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