YTL Power is showing a promising trading opportunity. Volume has started to pick up a little. That could well because of traders who previously trapped in the gapped down are selling off their stocks. Despite of that, the price went up. This could indicates that the market is ready to absorb the selling.

The next Support level is RM1.78 / RM1.75. Enter now and put STOP LOSS at RM1.70. Trail your stop loss as price goes up. Next Resistance level is at RM1.85.

The KL Composite index (KLCI) is forming a saucer shape. This is indication of a bullish trend. However the up trend could just a technical rebound as 20 days Moving Average, (Blue-Medium Term) and 50 days Moving Average (Yellow, Intermediate Medium Term) are still above the price.

The next resistance will be approximate. 1157. However a gap down was seen in this level on 3^rd July. Therefore foreseeing some selling pressure before KLCI could break through 1157.

Since Down Jones dropped 1.14% to close @ 11000, I’ll expect KLCI to drop in the morning but slowly recover if the market is strong. KLCI needs high volume on Monday (above 5 days Moving Average on Volume) in order to break out the resistance. Else it will retrace to support level of 1132 / 1126.

The KLOFFE SPOT MONTH has seen a very large up move on Friday towards the second session of the trading day. It broke the 1132 & 1140 resistance points with one GO.

It formed a good saucer shape which indicates bullish market.

On the 8^th Jul, the down bar on high volume indicates that there’s a panic selling from the traders where by market makers were readily absorbing the volume. This could be seen on the next couple days as the market was holding at the 1100 – 1125 level (closing on the high). The up bars after the high volume down bar indicated there’re more buying than selling.

At this point, the price should be either upwards or sideways. The market makers are accumulating, preparing for a move. Occasionally test (sharp down move) could be used to shake out any traders. Low volume test will show sign of strength.

Since DJIA was down about 1.14%, it is expected the KLOFFE to gap down on Monday to approximate 1129. Some sharp moves are expected to catch Stop Loss.

Recommend to Long on Monday (after gap down) and put your Stop Loss @ 1120. This is a long term trade which would last for a few days to 2 weeks.

Daily Pivot Points

Support 1: 1139 Resistance 1: 1145

Support 2: 1130 Resistance 2: 1154

Support 3: 1120 Resistance 3: 1164

Petronas Dagangan (Code: 5681) is displaying strength on the background (Potential Buying Stock). When there was a drop on 4^th July (high volume down bar, close higher than low), it indicates that the market was not interested to push it down further.

With limited risk, recommended to buy if breaks previous high @ RM7.50. Stop Loss should be placed @ RM7.25. Next Resistance @ RM7.60

This is a medium term trade with marginal return.

Dynaquest Rating: 5.5

KUB Malaysia Berhad – 13^th July 2008

KUB Malaysia BHD is showing an interesting trading opportunity. It tested the low @ RM0.28 but could not go lower. Then market showing buying interest as the volume rose after that. Doji @ high volume usually indicates Stopping Volume.

It has broken RM0.305 resistance.

Recommend to buy and Stop Loss @ RM0.305 level. If buy in, should watch for exit in one or two days. Next Resistance level is @ RM0.340.

This is a short term trade with marginal return.

Dynaquest Rating : <2.5