Technical View : KLCI - The Key 1120 Pt-Level, GuocoLand (M) Bhd (RM1.47 @ 08/08/08)

We did not expect the KLCI to fall close to 10 pts last Friday despite the poor performance of the US market last Thursday. However, what is important is that the KLCI was able to sustain a posture at above the key 1120 pt-level.

Last week, we saw the key index carve out two bullish candlestick patterns, which were the “Bullish Harami Cross” and the “Long Leg Doji”. Nonetheless, the market did not have the chance to stage a strong technical rebound to confirm the two bullish candlestick patterns. Anyhow, as long as the 1120 pt-level is not taken out, the odds are still high that the KLCI could march higher from the current level. Meanwhile, our bullish stance is maintained.

From the current level, look for an immediate resistance at the1148 pt-level followed by the 1165 pt-level. To the downside, the 1120 pt-level is now the immediate support followed by the 1100 pt-level.


GuocoLand made another step forward to test the 100-day MAV line, which is now situated at the RM1.52 level. It looks like the stock has formed a rather strong support at above the RM1.20 level. A successful crack above the 100-day MAV line would provide a buying opportunity for investors. We are eyeing the RM1.87 level as the upside target. Our cut-loss point is pegged at below the 100-day MAV line. From the current level, look for immediate support at the RM1.35 level.