In the Business Times today, Ranhill and its unit Ranhill Utilities (RUB) said they would always seek proposals to improve shareholder value in response to queries by Bursa Malaysia. There were reports that Tan Sri Hamdan Mohamad, the group's president and CEO, is planning to take Ranhill and RUBHD private.
Technically, the stock broke out of its bullish wedge pattern. Could see further upside from here. Upside target (is roughly based on the bullish wedge) is around RM2.75-2.80.
Thursday, 3 January 2008
US Markets tumbled
US stocks fell sharply on the 1st day of trading in the new year. This is Dow's worst start since 1983. The fall was led by banks and computer companies, after the announcement of the biggest decline in manufacturing numbers in 5 years. Intel fell the most in a year after Bank of America lowered its ratings. Caterpillar and IBM led the sharp fall in the Dow. Technically, Dow is likely doing the e-wave of its corrective Wave-4's triangle. However, should it fall below the 12,800 level, then the count is likely wrong. For now, the call remains. The Dow would likely rally into the 1Q after the e-wave ends.
STI is also stuck in a triangle since hitting a high in Oct. A drop to the 3,300-3,400 level is likely. Investors would likely do well buying quality stocks around these levels. I remain bullish on STI as I am bullish on Asia right now, at least for the 1H of 2008.
KLCI is likely to build a base around the 1,420-1,440 levels. Investors could choose to buy around these levels as the medium term uptrend is still intact. Continue to accumulate on weakness.
STI is also stuck in a triangle since hitting a high in Oct. A drop to the 3,300-3,400 level is likely. Investors would likely do well buying quality stocks around these levels. I remain bullish on STI as I am bullish on Asia right now, at least for the 1H of 2008.
KLCI is likely to build a base around the 1,420-1,440 levels. Investors could choose to buy around these levels as the medium term uptrend is still intact. Continue to accumulate on weakness.
Oil touched $100, commodities rallies
Crude oil rose to $100 a barrel for the first time in New York as record global fuel consumption threatens to outpace production. The 3-figures oil prices appears to be here to stay. Commodities elsewhere also continue to rise. Gold soared to a new high of US$860.10 an ounce while wheat and soybeans rose more than 3%. This rally in commodities was largely caused by the weakening US Dollar against major currencies. As US Dollar falls, it enhances the appeal of raw materials as hedges against inflation.
On this side of the shore - would the Malaysian Govt increase fuel prices? In the Financial Daily today, PM Datuk Seri Abdullah Ahmad Badawi said that the government will have to increase gasoline prices "when the time is right"- two days after a pledge to cap tariffs at the pumps ended. Travelling would cost$ more $$. Food $tuff would likely see further hikes. Roti Canai would cost$ 15% more. The inflationary cycle goes on...and on... HOWEVER, there is one BIG problem to all of this though - the disposable income the stays the same. :(
On this side of the shore - would the Malaysian Govt increase fuel prices? In the Financial Daily today, PM Datuk Seri Abdullah Ahmad Badawi said that the government will have to increase gasoline prices "when the time is right"- two days after a pledge to cap tariffs at the pumps ended. Travelling would cost$ more $$. Food $tuff would likely see further hikes. Roti Canai would cost$ 15% more. The inflationary cycle goes on...and on... HOWEVER, there is one BIG problem to all of this though - the disposable income the stays the same. :(
Wednesday, 2 January 2008
Minor pullback
STI ended the year with a bullish bar but in the short term, it appears to be still stuck in a triangle since the Oct peak. On the other hand, KLCI ended the year with a indecisive bar but week-on-week, the index is still looking bullish in the short term. What can we expect for the new year?
Investors should accumulate on weakness towards the 3,400 levels for STI and 1,440. Both indices are getting ready for a bullish 2008!! Investors also should be ready!!! Buy on weakness!
Technically, for S'pore - look out for Hor Kew Corp and Chip Eng Seng.
For M'sia - look out for TA Enterprise and Leader Universal. Ranhill could also run further today.
Investors should accumulate on weakness towards the 3,400 levels for STI and 1,440. Both indices are getting ready for a bullish 2008!! Investors also should be ready!!! Buy on weakness!
Technically, for S'pore - look out for Hor Kew Corp and Chip Eng Seng.
For M'sia - look out for TA Enterprise and Leader Universal. Ranhill could also run further today.
Monday, 31 December 2007
Happy New Year!!!
Cheers to all!!! Happy New Year and hopefully, 2008 would be a fruitful one!
Market-wise, 2008 should be a good year, at least in the 1st half, based on technical analysis. The US markets (Dow and S&P) and European markets (Dax and FTSE) are forming a 4th wave consolidation triangle. There should be a final 5th wave in the coming weeks, probably in starting the middle of Jan. This should be a very good and tradeable bull rally.
As for Asia, the 5th wave has likely started. The 3rd of the 5th wave is expected to be very bullish. This 3rd would likely coincide with the breakout of the triangles of US and Europe.
So, a strong rally should take place sometime in Jan/Feb... Investors may want to continue to buy on dips... Stay with the uptrend...
Market-wise, 2008 should be a good year, at least in the 1st half, based on technical analysis. The US markets (Dow and S&P) and European markets (Dax and FTSE) are forming a 4th wave consolidation triangle. There should be a final 5th wave in the coming weeks, probably in starting the middle of Jan. This should be a very good and tradeable bull rally.
As for Asia, the 5th wave has likely started. The 3rd of the 5th wave is expected to be very bullish. This 3rd would likely coincide with the breakout of the triangles of US and Europe.
So, a strong rally should take place sometime in Jan/Feb... Investors may want to continue to buy on dips... Stay with the uptrend...
Monday, 24 December 2007
Merry Christmas!!
Merry Christmas and Happy Holidays to all!! :)
Tech Stocks - look out for it!!! It appears that the tide is starting to turn. All the subprime issues and recession concerns in the US is starting to have little or no impact on the stock market. The recovery story could be on the way. This could be the start of a new rally into 2008!!
KLCI and STI also has been holding well.. Both support at 1,380 and 3,300 respectively held on very well indeed. Start looking for laggards.. the 1st round of rally is usually led by the blue chips! The the second liners would rally before finally the penny stocks.
The 1st half of 2008 is expected to be very very good!!! BE FOREWARNED!!! :D
Happy Trading into the new year!
Tech Stocks - look out for it!!! It appears that the tide is starting to turn. All the subprime issues and recession concerns in the US is starting to have little or no impact on the stock market. The recovery story could be on the way. This could be the start of a new rally into 2008!!
KLCI and STI also has been holding well.. Both support at 1,380 and 3,300 respectively held on very well indeed. Start looking for laggards.. the 1st round of rally is usually led by the blue chips! The the second liners would rally before finally the penny stocks.
The 1st half of 2008 is expected to be very very good!!! BE FOREWARNED!!! :D
Happy Trading into the new year!
Wednesday, 19 December 2007
Back at work!
Wow... it has been quite a break.. anyway, back to the markets...
The US markets.. hmm.. it fell into place just like what I mentioned back in Nov... It reached the 13,600-13,750 levels before easing. It could now continue to ease to 12,800-12,900, which is the good support for the BULLS. There are 2 scenarios for the Dow and S&P. It seems to be forming a triangle now but a sideways rectangular pattern could also take place. Both are continuation patterns. Hence, the BULL is still intact as long as the Dow stays above the August and Nov lows i.e. 12,500-12,600. Keep a sharp eye on those levels. Last night, the US markets rebounded slightly. Continue to expect a little more downside from here...
STI... is finding some support around current levels, the Nov lows. Indicators still point to lower levels from here.. probably finding its footing around the 3,200 support.. similarly, as long as the index stays above that level, the BULL is still very much alive..
KLCI... 1,380 is the current support level.. should hold here for a couple of days... then it all depends on external factors.. technically, it has yet to see a turnaround sign... so, expect selling pressure to persist for now... however, there are some pretty good looking stocks on the charts... Silver (7136) could run soon.. however, keep a stop at RM0.90 or slightly below.. another stock is MPHB.. stop should be at RM1.95.. Both have more than decent chance of rising in the coming months despite the gloomy immediate outlook for the index.. trade cautiously is still the main idea here...
The US markets.. hmm.. it fell into place just like what I mentioned back in Nov... It reached the 13,600-13,750 levels before easing. It could now continue to ease to 12,800-12,900, which is the good support for the BULLS. There are 2 scenarios for the Dow and S&P. It seems to be forming a triangle now but a sideways rectangular pattern could also take place. Both are continuation patterns. Hence, the BULL is still intact as long as the Dow stays above the August and Nov lows i.e. 12,500-12,600. Keep a sharp eye on those levels. Last night, the US markets rebounded slightly. Continue to expect a little more downside from here...
STI... is finding some support around current levels, the Nov lows. Indicators still point to lower levels from here.. probably finding its footing around the 3,200 support.. similarly, as long as the index stays above that level, the BULL is still very much alive..
KLCI... 1,380 is the current support level.. should hold here for a couple of days... then it all depends on external factors.. technically, it has yet to see a turnaround sign... so, expect selling pressure to persist for now... however, there are some pretty good looking stocks on the charts... Silver (7136) could run soon.. however, keep a stop at RM0.90 or slightly below.. another stock is MPHB.. stop should be at RM1.95.. Both have more than decent chance of rising in the coming months despite the gloomy immediate outlook for the index.. trade cautiously is still the main idea here...
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