KLCI & Futures

Are the CI & Futures going to breach the strong resistances or not? "So close yet so far".

KLCI - is very close to its 970 resistance & it was tested intra-day. All other signs are positive including BB, price vs MAV, MACDH & the ADX is still strong. Will it or won't it? Well its hard to say but if it does not break out soon then it has to instead correct downwards, because the bulls will give up sometime. For now all we can do is watch.


FKLI - The futures index is slighter softer than the CI. DMI has turned slightly down, ADX is flat, MACDH is also flat. But it is still comfortably above the MAV & within the upper BB channel. There is a 3 pts discount to the CI. Again the 970 resistance is strong. Nothing we can do but wait for its next move to give us a better signal.

DocTS Stock Update + Hiap Teck

Well its been 3 days since my last update, so lets see whats happening with my 4 stock picks. I am also adding another stock to watch - Hiap Teck.

1) ACPI - still looking good. All signals are still +ve & there are no sell signals. Prices still above the MAV & within the rising upper Bollinger Band channel. ADX still strong. MACDH also +ve. Resistance at 1.00 is still strong so it has to overcome this to continue its bullish trend. Still a hold.


2) Jotech - is looking good. It is still riding the 7-day MAV & all signals still solid. ADX is growing stronger, BB is rising & MACDH still +ve. A breakout above the resistance 0f 1.22 will be very strong for Jotech but this will be the 4th attempt in 5 months so we'll just have to wait & watch if it will be successful.


3) Sime Engineering - still looks ok. Signals getting a little flat but no sell signals yet. Thursday's close is stradling the 7 day MAV but still above the other MAV & within the BB upper channel. The latest news is that Sime Darby will buy Ramunia & not Sime Eng, but the ultimate benefit is to Sime Eng, so overall it is still good for Sime Eng. We have no idea how the market will respond but we are technicians & this is not bad news per se & good news long term, so we will watch the signals for our next move. For now its still a hold.


4) Utama - still looks very good. All indicators are fine. ADX continues to rise & is at 30. Very strong bullish signal. MACDH still rising & prices still above the MAV & within a rising BB. Immediate resistance is 1.23 to 1.25 & at this rate it should break above this resistance soon. Stock is still very bullish. Incidentally RHB is also looking equally good.


5) Hiap Teck - is another stock that is giving good signals using DocTS. ADX especially is quite strong & bullish. Resistance at 0.91 is very strong & 4 previous attempts to breakout, the most recent on Monday, were not successful. But if it does breakout, the rise will be very strong with a Target price of 1.18 (30% gain). So watch for high volume breakout to buy.


Summary - All stocks are still within trend. No reversal or sell signals yet.

DocTS Comments on Stocks, KLCI & Futures

1) Utama - Corrected 6 sen today but no change seen in DocTS signals. It is still positive. I will only be concerned if prices fall below the 7 & 14 day MAV for a start. Besides after a big rise on Friday some correction is healthy. Same comments for RHB as well.

2) Sime Eng- formed a spinning top. May be a sign of reversal. Its also at a strong resistance. Whether its a major reversal or minor correction remains to be seen. Other technicals still +ve. Needs to be watched closely. A minor correction is ok as long as other technicals remain sound.


3) Jotech - minor correction. Still supported by technicals. Only a fall below the 7 & 14 Day MAV will create concern. Must breach resistance at 1.22 to extend next move up.

4) ACPI - same as for Jotech. Technicals still supporting. Wait for next few days to clear up next moves. 1.00 will continue to be a resistance.

5) CI might start moving sideways. No indication yet of bearish or bullish moves altho Futures appears more bullish. There is no market moving news anywhere altho oil prices below US$60 is positive for the market & airlines stocks.

6) Futures was rather bullish Monday, but 970 will continue to be a strong resistance.

DocTS - Buy Jotech, Sime Eng, Utama, ACPI

Here are some stock recommendations based on my new trading strategy DocTS. BUT you must check it yourself & use your own judgement before making any trade. Never take my word for it, do your own homework.

1) Jotech - is starting to move positively. DMI crossed over on 22 Aug, ADX is now at 40, strong trend; MACDH crossed zero on 14 Sep; prices are above MAV & within BB upper channel, MAV short term are all above the long term, BB opening up bullishly. There is strong resistance at 1.23, so a breakout above 1.23 is the Buy signal.


2) Sime Engineering - is making its early move. DMI crossed over, ADX (28 pts) starting to move up, MACDH +ve, prices within upper BB channel & above all MAV. Only the 14 day MAV has yet to cross above the 20-day MAV (i.e. mid BB line). BB is widening positively. There is resistance at 1.52 but a break above this will lead it to new & strong highs. Fundamentally news flow has been very positive & if they do buy Ramunia it may be another KNM in the making, so this is a very good buy both Technically & fundamentally.


3) Utama has moved up strongly & confirmed its prior +ve signals. I believe this is just a start & it still has space to move up to a target of 1.37, a strong resistance. There is a possibility of a double top at the current level but all signals are bullish. A breakout above 1.25 is a possibility although a minor correction before the breakout is also possible. Any correction should be supported at 1.15.


4) ACPI - similar to Jotech, all indicators are positive. Only need to be careful of the strong resistance at 1.00. If breakout above 1.00 then it will rise to 1.25. It can be bought now but if 1.00 becomes a strong barrier & signals change then you should sell, so this is worth a punt because of its otherwise strong signals.

KLCI & Futures

KLCI - possible double top at resistance of 970. It will be quite tough for CI to break 970, normally for a strong resistance it will take several attempts. Looks like a bearish harami formed on Friday, so possibly sideways or downside move is likely. Other indicators are neutral.


FKLI Futures - also appears weak. Resistance at 970 is strong. Weekly candle is a long legged Doji just above the previous week's candle. Might be a reversal sign at strong resistance, so likely move is down. 14 day MAV is crossing below BB mid-line (20day MAV), so things are starting to look more negative. Other indicators are neutral. Likely move is down.