IOI Corp

IOI Corp has moved up together with price of palm oil. Since breaking out of the resistance of RM 4.00, this counter has gained RM 0.40 to close at RM 4.40. Not bad for a one month gain.

The counter is processing the high of RM 4.48 set in 7 Jan 2009. MACD indicator is about to go above its signal line. This is an indication that there may further strength in this rally. ADX is approaching 40 level with +DI above the –DI, another bullish indicator.

RSI is moving down from overbought level. However, so long as price stays above RM 4.20, the upwards momentum should be sustainable.

Telekom Malaysia Berhad

Global stock markets pullback this week after a spectacular rally in March that saw majority of the world indexes up with double digit percentage gains. KLCI went from a low of 836 on 12 Mar to a high of 926 on 6 Apr, a gain of 10%. Investors that missed out on this rally can consider picking up counters during the pullback.

Let’s look at Telekom Malaysia which made a bullish MACD crossover yesterday. The counter gapped up on 25 Feb with high volume. The MACD indicator made a bullish crossover and is now above its 9 day signal line. RSI is approaching overbought levels suggesting that the stock may pullback anytime soon. However with the MACD showing a bullish signal and the current +DI above the –DI with ADX above 40, pullback should be mild and not a severe downswing.

Resistance level is at RM3.68 and RM3.76 respectively. Support level is at RM3.46 and RM3.38.