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!

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.

US Stock Market - More Weakness Ahead

Dow, S&P500 and Nasdaq index broke below their uptrend line on Friday. Volume has been picking up and this suggests real selling and not just profit taking.

The recent weakness started off from China when news broke that banks have been told to suspend lending. Although the suspension was not system wide, the market reacted nevertheless with Shanghai index moving down more then 3% and Dow closed nearly 1.1% lower. Adding to the uncertainty was US President Barack Obama proposal to overhaul US banks in order to avoid future financial crisis.

Technical charts are looking weak with MACD below its signal line and –DI above the +DI together with an increasing ADX value.

The support level for Dow is near the 10,000 level which is where the Fibonacci retracement is located. Expect to have more weakness next week.