KDN PP9488/05/2010 (023849) Monday–18/10/10

TECHNICAL ANALYSIS

For Private Circulation Only
a


Weekly Technical Outlook

FBMKLCI
1489.86(-6.52)

Resistance: 1494, 1499, 1508
Support: 1485, 1481, 1473


Chart 1


Week-on-week, the FBMKLCI added 8.45 points. At the close on
Friday, it slipped 6.52 points, day-on-day to 1489.86.

Last Friday, the main index corrected slightly from previous high of
1503.82. As always, the market reacted negatively after the Budget
was unveiled. It seems that the market is ready to be put on hold for
the time being. The interesting point to note is the FBMKLCI has
moved below the very short-term index (5-day MA) but remain above
the upper boundary line of an uptrend channel. Such scenario gives
the impression that the immediate support of 1486 looks a bit shaky.
Whether this is a warning of an impending short-term sharp decline








2
TECHNICAL ANALYSIS
remains to be seen. Meaning, on the surface we are still `safe´ but that
might change any day. Looking at the volume action (Chart 2),
Thursday´s volume failed to exceed the Wednesday´s volume that
placed the market on stand still i.e. almost went nowhere. As of
Friday, we noticed the daily volume declined at slower pace and
subsequently it dipped below the trigger line. However, there was no
sign of selling pressure as KLCI/Volume depicted. low on a down day.
Assuming in the next few days the main index violates below 1486
significantly, it could decelerate from here and there is strong
tendency it will move lower towards the 1474 support. As such, the
market will re-enter inside the uptrend channel. Again, as long as the
index continues to move inside the up trend channel, the direction is
still up for medium term.

At the close the FBMKLCI´s 14-day settled at 68.18 per cent. The
summation on this indicator, it has exhibited a negative divergence on
Thursday. Week-on-week it slipped merely 1.88 points. Also noted
both signal and MACD line is in a Neutral ground as both lines display
neither a golden nor dead crossover. Observed, this indicator also
flashed the negative divergence as well. This week we expect the
FBMKLCI to meet resistance at 1495-1500, while the support is at
1480-1474.









3
TECHNICAL ANALYSIS


Chart 2









4
TECHNICAL ANALYSIS



Technical Stock Picks

Integrax Berhad
Stock Code: 9555

Resistance: RM1.22, RM1.24
Support: RM1.20, RM1.18, RM1.16


Chart 1


Featured is the daily chart on Integra. Weekly chart (chart 2), the
stock has completed its formation of an inverse Head-Shoulder.
Interestingly, the price exceeded the minimal target price of RM1.38
and reached the peak of RM1.44 in February 2010. At the first glance,
Integra is likely to develop a triangle that might be the Head portion of
a reversal pattern. Whatever the case may be, the doubtful features
remains the obstacles despite it having successfully met all the four
reversal points. As we can see, the final reversal point was at RM1.13
that acts as the support area, while immediate resistance was the
converging line that stands at RM1.28. One has to adopt a cautious
stance as these patterns have the tendency to flash a hoax signal.








5
TECHNICAL ANALYSIS

The last time Integra´s RSI made an extreme overbought position was
on 8 June 2010. At that time the reading was 79.11 per cent. At the
close, it ended the day at 44.69 per cent and trending sideways.
Short-term wise, if the action decides to dip below RM1.19
significantly, we expect the short-term momentum to follow suit. As of
Friday, the daily MACD line is trending below the signal line to indicate
the present trend is slowly losing its momentum. At this junctures, we
are of the opinion, the stock remains indecisive to which pattern/path
it wants to form, and then, we suggest Neutral on this stock.


Chart 2











6
TECHNICAL ANALYSIS

SUMMARY

STOCK PICKS
Stock Code Trading
Idea
Price/
Date
Closing
Price @
15-10-
10
Upside
Target
Loss
Exit
(Cut
Loss)
Remarks
Encorp
Berhad
6076 Accumulate 97 sen@14-
07
RM1.02 RM1.58 90 sen Buy upon
breakout
RM1.03.
IGB
Corporation
Bhd
1597 Trading Buy RM1.64@31-
05
RM1.94 RM2.10 RM1.71 Met RM1.95
intra day
high
Sunway City
Berhad
6289 Accumulate RM3.45@24-
05
RM4.00 RM4.07
RM4.49
RM3.78 Price
adjusted due
to dividend.
Dayang
Enterprise
Hldgs Bhd
5141 Trading Buy RM2.15@13-
08
RM2.38 RM2.22
RM2.36
RM2.65
RM2.18 RSI 72.62%
(O/B)
Bandaraya
Development
Berhad
1473 Accumulate RM1.55@03-
06
RM2.25 RM2.21
RM2.33
RM2.47
RM2.08 At the close
RSI 56.03%
Leader
Universal
Hldgs Bhd
4529 Sell 85 sen@04-
06
89 sen 93 sen 77 sen Potentially to
form H/S
pattern.
Intraday high
92 sen
Kinsteel
Berhad
5060 Accumulate 80 sen@08-
06
91 sen 97.5 sen 75 sen
Lingui
Development
Bhd
2011 Accumulate RM1.06@09-
06
RM1.28 RM1.46 RM1.01 RSI 66.73%
(O/B). Intra-
day high
RM1.35
Land &
General Bhd
3174 Accumulate 39 sen@14-
06
52.5 sen *71 sen 35 sen *Medium to
long term TP.
Initial target
price is 53 sen
Lion
Industries
Corp Bhd
4235 Trading Buy RM1.52@15-
06
RM1.90 RM1.76
RM1.95
RM2.02
RM1.71 Reached
intraday high
@RM1.93
Mah Sing
Group Bhd
8583 Accumulate RM1.72@28-
06
RM1.87 RM2.44 RM1.63
M3nergy
Berhad
8559 Accumulate RM1.80@08-
07
RM1.84 RM2.23 RM1.75 To be
acquired
POS Malaysia
Bhd
4634 Buy RM3.02@09-
07
RM3.26 RM3.65 RM2.92 Buy upon
breakout of
RM3.17
Kim Hin
Industry Bhd
5371 Accumulate RM1.20@14-
07
RM1.27 *RM2.03

RM1.15 *Medium to
long-term
target price.
Initial target
price RM1.40
Tenaga
Nasional
Berhad
5347 Accumulate RM8.60@15-
07
RM8.93 *RM9.52 RM8.57 *Initial
target price.
Reached
RM9.29 high.
Sunway
Holdings Bhd
4308 Buy RM1.60@27-
07
RM1.97 RM2.20
RM2.62*
RM1.76 *Medium to
long-term
target price
Selangor
Dredging Bhd
2224 Trading Buy 65.5 sen@29-
07
75 sen 92 sen 58.5
sen

UEM Land
Hldgs Bhd
5148 Buy On
Weakness
RM1.70@02-
08
RM2.34 RM1.95
RM2.18
RM2.56
RM2.18 RSI 67.36%
(O/B)











7
TECHNICAL ANALYSIS

Stock Code Trading
Idea
Price/
Date
Closing
Price @ 15-
10-10
Upside
Target
Loss
Exit
(Cut
Loss)
Remarks
Leong Hup
Hldgs Bhd
4839 Accumulate RM1.47@18-
08
RM1.61 RM1.61
RM1.73
RM1.40 Reached
RM1.65
intra-day
Supermax
Corporation
Bhd
7106 Buy On
Weakness
RM5.07@26-
08
RM4.51 RM4.83 Next support
at RM3.96
and RM3.74.
Dipped
RM3.75. RSI
52.20%
Top Glove
Corporation
Bhd
7113 Accumulate RM5.98@06-
09
RM5.44 RM6.50 Strong
support at
RM5.50
followed by
RM4.81.
Sunrise Bhd 6165 Accumulate RM2.04@08-
09
RM2.22 RM2.43 RM1.84 Intra-day
high
@RM2.42
Media Prima
Bhd
4502 Neutral RM2.11@27-
09
RM2.30 RM2.62 RM1.98 Buy upon
breakout
above
RM2.18
Media
Chinese Intl.
Ltd
5090 Trading Buy 86.5 sen@28-
09
88 sen RM1.06 79 sen Buy upon
breakout
above 90 sen
KFC Holdings
Bhd
3492 Trading Buy RM3.12@01-
10
RM3.26 RM3.95 RM3.10 Buy upon
breakout
RM3.17
PLUS
Expressway
Bhd
5052 Trading Buy RM4.20@04-
10
RM4.46
(Suspended)
*RM4.64 RM4.05 *Initial
target. Buy
upon
breakout
RM4.24
Mamee
Double
Decker Bhd
5282 Trading Buy RM3.49@06-
10
RM3.54 RM4.08 RM3.44 Buy upon
breakout
RM3.58
Ann Joo
Resources
Bhd
6556 Buy On
Weakness
RM2.82@07-
10
RM2.98 *RM2.97 Downside
target prices
@RM2.67 &
RM2.58.
*Initial
target price
Affin Holdings
Bhd
5185 Trading Buy RM3.24@08-
10
RM3.24 RM3.50 RM3.09 Invt. H/S
pattern
confirmed.
Time
Engineering
Berhad
4456 Accumulate 45.5 sen@11-
10
44.5 sen

RESEARCH DEPARTMENT
research@pmsecurities.com.my





The information contained in this report was prepared from data believed to be reliable but we have not independently verified such data and we do not make any representation or
warranty as to the accuracy or completeness of the information. This report is general in nature and has been prepared for information purposes only. It does not have regard
regards to any specific investment objective, emphasis or need of any person or party and is not to be construed as an offer, invitation, solicitation or recommendation to buy or
sell any securities of the company or companies covered herein by this report. Opinions expressed are subject to change without notice. PM Securities Sdn Bhd and/or its directors
and staff may have an interest in securities of the company or companies covered by this report and may earn brokerage for dealing in the securities mentioned herein. Any
person/party acting upon this report do so at their own risk and PM Securities Sdn Bhd and/or its directors and/or staff do not accept any liability arising from use of this report.







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