Resort World

Resort World is trading on a downtrend channel.

MACD indicator is almost in line with its signal line. If the stock is able to pierce above the downtrend line, MACD will make a crossover above its signal line. If that happens, there is a possibility of testing the pivot point at RM 2.46.

With Dow Jones Industrial Average down 148 points last night, Monday should see further weakness in Resort World. The next level of support is at RM 2.15 level.

IOI Corp

IOI corp closed at RM 3.78 on Friday.

The stock price is now sitting near the 20 day moving average. The stock price looks to be forming a pivot point at RM 3.68 level.

The fast stochastic line is about the slow stochastic line. Once the fast stochastic line cuts above the slow stochastic line, it indicates short term strength and a possibility of a short term rebound from current levels.

If RM 3.68 is not broken today, it will most likely test RM 4.00 level soon.

TM

TM technical chart is not looking pretty. The stock looks set to break RM 2.98 level and to test support at RM 2.88 which is the 61.8% Fibonacci Retracement Level.

MACD indicator just crossed below it signal line and with Dow closing down 143 points on Friday, it looks bearish for TM at this juncture.

So Monday should be good for the bears. Happy trading!

KLCI Update

KLCI closed at the high of 920.66. The next resistance is at 926.65 and 970 respectively.

The technical charts continue to show a bullish bias. The MACD line is currently above its signal line indicating a bullish market.

+DI is still above –DI. However ADX will need to go above 30 soon in order to have a sustainable rally.

RSI is approaching overbought levels. Unless there is a sustainable rally, market will not stay in overbought level for long. In this market, it is best to be nimble and take profit when a danger sign appears. For example the appearance of a graveyard doji, hanging man etc.

All eyes will be on US market tonight to see whether last week’s breakout is a false dawn.