FBM-KLCI is steaming ahead with the bulls on the steering wheel. Added with the Dow’s strong +2.1% overnight performance, it appears that the bulls might take out our 1,165 target level for the KLCI by today itself.In addition, steel counters like PERWAJA and KINSTEL were huge beneficiaries of new buying volume yesterday and may stage a breakout soon. Steel counters have traditionally been a strong rallying force for our KLCI with its ability to grease the rally of construction as well as property stocks. Thus, we foresee the KLCI marching towards the 1,200 level very soon.
PERWAJA (RM1.55)
The leader of the steel pack PERWAJA, has been quietly charting a nice uptrend for the last 10 days. It is now trading bullishly above all of its MAV lines. In addition, its volume is also increasingly in an almost linear uptrend.
The 1.60 level would be the key level to watch. If PERWAJA can break above this June high, it will attract significantly more buying interest and buoy the stock to new highs in the short term.
We recommend PERWAJA as a trading buy if the 1.60 level is broken today. We opine that the 1.60 level will be taken out in this morning itself which would be a sign for traders to make entries into this stock.
The leader of the steel pack PERWAJA, has been quietly charting a nice uptrend for the last 10 days. It is now trading bullishly above all of its MAV lines. In addition, its volume is also increasingly in an almost linear uptrend.
The 1.60 level would be the key level to watch. If PERWAJA can break above this June high, it will attract significantly more buying interest and buoy the stock to new highs in the short term.
We recommend PERWAJA as a trading buy if the 1.60 level is broken today. We opine that the 1.60 level will be taken out in this morning itself which would be a sign for traders to make entries into this stock.
HUAAN (RM0.53)
HUAAN is a favorite trading stock among retailers. Though HUAAN is not a pure steel company (it is a manufacturer of coke which is primarily used in the steel production process), traders always associate HUAAN with other steel stocks.
However, trading this stock is trickier as yesterday’s marginal spike in buying volume was not self-initiated but was buoyed by the steel wave which was engineered by PERWAJA. We would rather see HUAAN summoning more inner strength to rally. Hence we have set the 0.545 resistance as a key level which happens to be the ceiling of the trading convergence box which HUAAN has been trading within for the past one month.
If HUAAN can break above the 0.545 key level during intraday trade today, we would peg HUAAN as a trading buy.
HUAAN is a favorite trading stock among retailers. Though HUAAN is not a pure steel company (it is a manufacturer of coke which is primarily used in the steel production process), traders always associate HUAAN with other steel stocks.
However, trading this stock is trickier as yesterday’s marginal spike in buying volume was not self-initiated but was buoyed by the steel wave which was engineered by PERWAJA. We would rather see HUAAN summoning more inner strength to rally. Hence we have set the 0.545 resistance as a key level which happens to be the ceiling of the trading convergence box which HUAAN has been trading within for the past one month.
If HUAAN can break above the 0.545 key level during intraday trade today, we would peg HUAAN as a trading buy.
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