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Saturday, 31 March 2012

KLCI's Potential Sector

On Friday, KLCI's Index showed strong momentum to close at 1596.33 (+10.89pts).
This means that our index ended 1st quarter with increment of 4.77% (+72.73). But yet again, we failed to close at 1600 by 1st quarter.
If Friday's momentum is about to continue, most probably we will hit 1600 on the 1st day of 2nd quarter. But what counter should we give attention in order to get some swing profit?
I picked some potential sector based on my thought.

FINANCE

Current closed index is 12321.65. Expected to continue for few days with target of 14344, 14445, then 14546.
The arrows are indicated as high volume occurred price momentum should persistence as 2 pattern before.





















If we see ADX, the signal shows a bullish trending for this sector.
With money is injected more into finance counter, we can see that buyer interest on finance counter is increasing with positive Stoch, Wm%R, & RSI.



CONSUMER

Same goes to consumer sector. ADX showing long bullish trending.
Stoch & Wm%R are going to stay above 80% and -20 respectively, as I see interest by buyer should still there. From candle, hammer was created with long shadow as 2nd half session pushed up.
Some counters have dropped due to profit taking after a fierce run such as DLADY.


INDUSTRIAL

This sector also should be considered in to find potential counter.
With Parabolic signal started to show green on last friday, maybe it a starting point for reversal.
  1. +DI is above -DI, and signal should go over 20 on Monday, then we might see good run by this sector.
  2. CCI is going above 0 and move forward.
  3. MACD histogram going to be above 0.
  4. Stoch & Wm%R show good buyer interest.

PLANTATION

Another good sector to look into.
ADX looks good, with +DI above -DI, and signal above 20.
CCI started to created mountain yet the moving still below 100 and in up trending.
Stoch & Wm%R, are going forward and will stay above 80% and -20 respectively.



Some say that last Friday possibly a window dressing for 1st quarter. If so, then we will see red on Monday. As what had happened to our 2011 closing, where we ended the year with +24pts, and the next trading day was dropped -17pts. But the different this time is, almost all regional index closed in good shape, not like in year end where other countries were bloody red.


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