17th November 2011, Thurday (CIMB)

CIMB

Last Done: RM7.06

CIMB started to show some weakness from technical perspective by breaking below the SMA 20 and the SMA 20 also started to turn south, what shall investors do?

For short term trading investors, this is not the level for you to average down. Average down can only be used if rebound set in and a higher low created. So long as the price did not hit your stop loss level, just leave it. If the stock price able to create a higher low below RM7 and the stock rebounded, then, investors can choose to average down on any level below RM7.

Immediate support is seen at RM7, followed by the recent low of RM6.60 and immediate resistance is seen at RM7.13 level.

FKLI

Eyeing for Short Position…

I remain yesterday’s call – if the FKLI unable to sustain above the 1462 level convincingly, investors can take the opportunity to initiate short position with the stop loss level being placed around 1470 level. Investors can take the first batch of profit around the 1450 level and ride on the downtrend if the 1450 level is being taken over convincingly.

Immediate support is seen at 1462 level, followed by 1470 level and immediate resistance is seen at 1481 level.

FCPO

Closure Monitoring of 3225 Level!

The FCPO has taken over the 3225 level yesterday and we should have a clear confirmation by tomorrow. Currently, the FCPO yet to show any turning signal and so long as the 3225 level can be supported, the FCPO should move further towards north.

Investors will need to closely monitor this level for any fresh position initiation. Stop loss level shall be placed according to your risk reward ratio.

Immediate support is seen at 3220 level, followed by 3200 level and immediate resistance is seen at 3250 level, followed by 3300 level.