LCL Corporation Bhd

LCL Corporation closed at RM 0.725 during Friday's trading session.

The stock closed up on high volume a sign that investors are buying into the stock.

The technical charts are also showing bullish signs.

The MACD indicator just made a bullish crossover.

The +DI is above the -DI. However ADX is still at the lower end which means that the stock price although moving up, will most likely be a weak up trend.

RSI is increasing and is not in overbought region.

The resistance is still at RM 0.76. Support is at RM 0.62 level.

A way to ride on this uptrend is to buy when the stock moves above RM 0.73 and to take profit when RSI shows decreasing momentum. Stop loss level can be set at slightly below RM 0.64 which is near the 50 day moving average closing price.

Lafarge - Buy On Pullback

Lafarge Malayan Cement broke out of its resistance level RM 4.74 near the end of May 09 and the stock has been gaining ground since then to reach a high of RM 6.50.

As the leader of the Malaysian cement industry and a major player in the Asian export market, this stock should benefit from the stimulus plan that are being implemented by Asian countries.

The ADX is above 30 with +DI above the –DI, indicating a strong trend that is developing.

MACD is also bullish at the moment with the indicator above its signal line.

Analysts are expecting a pullback in the stock market after a spectacular run from March lows. This stock should be a good candidate to buy on pullback. Look to enter near the RM 4.74 level, which is the previous resistance level.

Market Update

Dow Industrial Average reached a high of 8839 in the opening minutes before succumbing to selling pressure. It lost all its gain and went into negative territory before buyers came in to bring up the index. Market closed at 8768, up 12 points for the whole session.

The non-farm payroll showed a decline of 345000, a better than expected number of job losses. However un-employment rates reached a high of 9.4%. This mixed picture also explains why the market closed near the unchanged mark.

Looking at KLCI, it has recovered more than 50% of its downswing from May 08 till Oct 08. Immediate resistance is at 1090, 1111 and 1141 respectively. Support is at 1055, 1036 and 1000.