Saturday, March 13, 2010

Kuala Lumpur Kepong Bhd

Kuala Lumpur Kepong Bhd was down 28 cents on Friday’s trading session. It closed at RM 16.62, just below it’s 8 day moving average.

So where do we go from here?

The US market did not move much on Friday night. The Dow ended at 10,624 up 12.85 points. The indecisive market action will not bring much cheer to market participant.

For Kuala Lumpur Kepong Bhd, the technical charts are showing a slightly bearish picture.

Firstly, the –DI is above the +DI which suggests weakness. However, the ADX is still at very low levels suggesting that a sustained down trend is not in the cards.

The MACD indicator is making a bearish crossover, moving below it’s signal line.

One way to play this stock is to short the counter on the next trading session at price that is slightly above RM 16.62, the low set on Friday. The stop loss should be at the RM 17 level.

The 2 day RSI for this counter is going downwards and is approaching oversold levels. The next one or two session will be weak for this stock and if you can short at RM 16.62, there may be a chance to walk away with a slight profit.

Good luck and happy trading!

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