With key technical momentum indicators turning up following recent strength and ability of the FBM KLCI to bounce back to five-month highs, an upside trigger is pending which needs to be a positive catalyst for further gains ahead. The stronger trading momentum, positive market breadth and renewed buying interest sustaining the robust recovery seen in property and construction stocks could spillover to the oil & gas, technology and blue-chip sectors as rotational buying stage a strong comeback. Meanwhile, last Friday's weaker US payrolls data which signaled rising unemployment and an easing in wage growth reinforced expectations that the Fed will keep interest rates steady at its September meeting, which should pacify investors and reduce jittery sentiment over further rate hikes.
As for the index, a breakout confirmation above 1,464 and 1,470 backed by strong buying momentum would be crucial to fuel rise towards the 1,490/1,500 resistance level, with next upside hurdles seen at 1,515, the 200-week moving average, and 1,552, which is the 50%FR of the 1,896 high (April 2018) to the 1,207 low (March 2020). Immediate chart supports cushioning downside are revised upwards to 1,440, then 1,433, and subsequently 1420/1,400.
On blue chips, key banking, gaming and telco counters such as AMBank, CIMB, Maybank, RHB Bank, Genting Berhad, Genting Malaysia, Axiata and CelcomDigi may attract renewed buying interest given their positive technical momentum indicators.
Source: TA Research - 4 Sept 2023
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NESTLECreated by sectoranalyst | Sep 30, 2024
Created by sectoranalyst | Sep 30, 2024