Genting Berhad Still Bullish - Buy On Pullback

Genting Berhad had a great run after breaking through the resistance level at RM 8.10. It went on the hit a high of RM 9.01 before retracing some of its move. Judging from the technical charts, the down swing looks more like a healthy pullback and the up trend is still intact.

The 2 day RSI is decreasing after hitting overbought level and is not approaching the oversold threshold. The price level is about to hit the 38.2% Fibonacci retracement level of RM 8.51 which may encourage some buying. A strong support level appears at RM 8.10 level.

This may be a chance to get into the counter at a cheaper level.

Genting Weakness Ahead

The chart for Genting is indicating weakness in the short term. This is in line with bearish conditions for the past few weeks.

The MACD indicator has just cut below its signal line, indicating that the bears are gaining the upper hand.

The price has pulled back towards its 50 day moving average and this will be a critical level to watch. If the price is not able to hold onto the 50 day moving average, bears may increase their selling pressure and it will violate the up sloping trend line that began in the month of Mar.

Any rebound will meet with selling pressure at RM7.06

Genting Bhd

US market had a good performance on Friday with the Dow Industrial Average moving up 122 points to end the week at 10566. Volume on Friday was far from impressive showing a lack of participation among the traders.

Now let’s look at one interesting counter, GENTING BHD.

The technical picture was pretty bleak in the beginning of the week. The counter broke through it’s 200 day moving average and showed no signs of rebounding. However, the counter sprang into life on Friday and the counter is now testing it’s 200 day moving average once more.

The MACD indicator made a bullish crossover and is a good sign for the bulls in the short term.

The RSI indicator is not at oversold levels yet, suggesting that the up move still has some legs left.

However the –DI is still above the +DI with the ADX turning down. This suggests a slowing down of the down trend.

Given the current market conditions, I would be a seller if the counter managed to get to RM 7.00.

Genting Bhd Update

Genting has broken down of the down trend channel and has broken through the previous support area of RM 4.30.

It closed at RM 4.08 which is just below the 61.8% retracement level. MACD just made a bearish crossover and indicates more weakness going forward. The breakdown occurred on high volume indicating that investors were eager to get out of the stock.

A re-test of RM 3.58 cannot be ruled out. The next few trading days will be crucial. Let’s see if the stock can hold above RM 3.58.

Genting Bhd

Genting Bhd closed at RM4.52 on Wednesday.

The price is now within the Bollinger band and is sitting near the 20 day moving average. It looks like moving into consolidation phase.

The MACD indicator is above its signal line and is indicating further strength. The RSI indicator is moving up from oversold levels and is approaching the 50 level.

The stock is most likely able to hold on to support of RM4.30. Immediate resistance is at RM4.75.

Genting Bhd Case Study

Genting BHD was down by 2.29% yesterday. Let's take a look at the technical
chart for this stock.


The 14 day ADX line is at 20.99. It has come down from a high of 34 set on
18 Mar 2008. This shows that the down trend is not as severe as the
previous week.

The MACD chart is still showing an up trend with the MACD indicator above
it's 9 day MACD Signal line. The crossover occurred on 25 Mar 08 which
coincides with the up move from 6.30 to 6.80. However, the MACD histogram
is decreasing which shows that the up move is beginning to slow down.

The RSI value is currently below 50 but it has not reached the oversold
region.

Overall, the stock has hit a resistance at 6.80. However the down trend is
not as strong as previous week and the MACD is still showing strength. The
support level is at 6.00.