6th June, Wednesday (top Glove)

Top Glove

Last Done: RM4.63

So long as the stock can stay above the SMA 200 & Fibonacci level of 50% (RM4.60), more upside is expected. Those investors who are holding the stock can hold on to your position. However, investors who are going to initiate fresh position, it might not be worthwhile to go with it as upside is limited at the moment but downside risk is high. For risk taker investors, you may want to initiate position at current level with stop loss level being set around RM4.40 and first profit taking level at RM4.90.

The immediate support is seen at RM4.40 level, followed by RM4.00 and the immediate resistance is seen at RM4.75 level, followed by RM5.00.

FKLI

Downside Risk Remains High!

The index is expected to hover within the range that we are eyeing (1550 to 1580 levels). Nothing much that investors can do except to capture on the range trading (short when the FKLI approaches 1585 level and long when the FKLI approaches 1550 level). However, investors will need to place a tight stop loss point whenever initiated long position as the downside risk is increasing.

Provided the 1585 level can be taken over convincingly, then, we will expect the FKLI to re-challenge the historical high, else, not much to be expected as the FKLI will remain trading in the range that we are looking at. Failure for the 1550 level to be supported will cause the FKLI to head towards SMA 200 level (1509).

The immediate support is seen at 1550 level, followed by 1540 level and the immediate resistance is seen at 1570 level, followed by 1580 level.

FCPO

Bears Won!

Nothing much has changed since yesterday, the bears basically have won the battle and more downside is expected moving forward with the immediate support is seen at 2915 level. Failure for this level to be supported will see the FCPO to re-test the recent low – 2750 level.

What investors can do? As the downside seems limited at the moment, short position for mid to long term trading might not be that encouraging. However, short position for short term trading (less than a week) can be considered with stop loss level being set around 3050 level.

The immediate support is seen at 2915 level, followed by 2850 level and immediate resistance is seen at 3040 level, followed by 3100 level.

Disclaimer:

The information herein was obtained or derived from the source that I believed are reliable. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute my judgment as of this date, not an invitation to buy and are subject to change without further notice.