October 17, 2017

Traders’ Almanac
BM TECHNOLOGY INDEX –
Uptrend Extended
 BM TECHNOLOGY INDEX – Upward trajectory extended Analysts
 KRONOLOGI ASIA – Breakout on high volume Nik Ihsan Raja Abdullah, MSTA, CFTe
 NOTION VTEC – A low is formed (603) 2297 8694
nikmohdihsan.ra@maybank-ib.com
 CRUDE PALM OIL – Still volatile
 KLCI INDEX FUTURES – Upside likely capped Tee Sze Chiah
(603) 2082 6858
TECHNICAL

Market Overview szechiah.t@maybank-ib.com

FBMKLCI bucked the regional uptrend, ending 0.95pts lower at

Market Summaries
1,754.37, led by declines in AXIATA, ASTRO and CIMB. Market
Index Changes (%) Close Momentum
breadth turned negative, with losers outpacing advancers by 487
to 404. A total of 3.2b shares worth MYR2.3b changed hands. FBMKLCI (-0.05) 1,754.37 UP
DJIA 0.37 22,956.9 UP
Construction stocks will likely steal the limelight today following
MSCI W 0.09 2,029.89 UP
the award of several jobs related to MRT2. That said, sentiment
MSCI AP 0.66 693.04 UP
would stay volatile ahead of Diwali holiday and China National
FCPO 0.47 2,762 UP
Congress. Technically, we expect FBMKLCI to trade range-bound, BRENT 1.14 57.82 UP
Malaysia

likely between 1,749 and 1,770 in the near-term as indicators GOLD (-0.12) 1,299.90 DOWN
remain subdued. Downside supports are 1,749 and 1,744. USDMYR 0.11 4.2175 DOWN

(Sources: Bloomberg)

TODAY’S HIGHLIGHT – BURSA MALAYSIA TECHNOLOGY INDEX, UPWARD TRAJECTORY EXTENDED

Bursa Malaysia Technology Index (KLTEC Index), as predicted earlier (refer to Trader’s Almanac dated 11 Oct
2017), took out the 38.52 level. This should pave way for greater upside ahead. Our previous expectation of an
extended rally towards 40.06 and 41.96 is still intact as selling pressure was well-absorbed. As the candles rise
further, its 30-day SMA is expected to diverge from the 50-day SMA, implying that the next up leg is likely
underway. Our optimism is also premised on the improving technical readings. After staging a positive
crossover, MACD is now rising at an accelerated pace while RSI is heading towards the upper band of the
neutral zone. With no signs of major downward reversal, technology stocks should continue to gain interest in
the near-term.

THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128)
SEE PAGE 5 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Technical Research

TRADING IDEAS

KRONOLOGI ASIA, DAILY CANDLESTICK CHART (MYR1.10)

STRATEGY:
ACCUMULATE (TECHNICAL)

Share price broke out of

its triangle pattern on
high volume yesterday.
The breakout run should
lift the candles towards
its previous high of
MYR1.13 soon. Note that
MACD has just staged a
positive crossover while
RSI has hooked upward.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR1.03 ~ MYR1.06 BELOW MYR0.99 MYR1.13, MYR1.23 8 weeks

NOTION VTEC, CANDLESTICK CHART (MYR0.965)

STRATEGY:
ACCUMULATE (TECHNICAL)

Stock is still in a
consolidation mode but
we believe a low is
formed at MYR0.93. Once
the 30-day SMA
(currently at MYR1.00) is
taken out, next upswing
should lift share price
towards MYR1.07.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.945 ~ MYR0.96 BELOW MYR0.93 MYR1.00, MYR1.07 8 weeks

October 17, 2017 2

Technical Research

COMMODITY & DERIVATIVES WATCH

CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,762)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FCPO for
intraday trading.

FCPO swing past its 30-day

SMA but the formation of a
Doji reversal pattern
indicates that momentum
has tapered off. Expect
FCPO to gyrate near its
moving average in the
near-term.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

MYR2,653 MYR2,572 MYR2,770 MYR2,802 UP UP

KLCI INDEX FUTURES, SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,756.50)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FKLI for
intraday trading.

FKLI is still stuck in a

sideways consolidation
mode with gains likely
capped by its 30-day and
50-day SMAs. Technical
reading remains subdued.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

1,751.50 1,744.00 1,769.00 1,778.00 DOWN NEUTRAL

October 17, 2017 3