October 27, 2017

Traders’ Almanac
KLCON Index Made a Critical
Reversal within Support Zones
 BM CONSTRUCTION INDEX – Bounced from lower channel Analysts
 BINA PURI HOLDINGS – New up leg has been established Nik Ihsan Raja Abdullah, MSTA, CFTe
 EFFICIENT E-SOLUTIONS – Breakout from “flag” pattern (603) 2297 8694
nikmohdihsan.ra@maybank-ib.com
 CRUDE PALM OIL – Another attempt to charge higher
 KLCI INDEX FUTURES – Rebound is on the cards Tee Sze Chiah
(603) 2082 6858
TECHNICAL

Market Overview szechiah.t@maybank-ib.com

FBMKLCI eased 2.25pts to 1,736.80 yesterday, led by declines in

Market Summaries
IHH, YTL and AMM. Broader market, however, turned positive with
Index Changes (%) Close Momentum
gainers outpacing losers by 420 to 383. A total of 2.52b shares
worth MYR2.13b changed hands. Sentiments will likely stay FBMKLCI (-0.13) 1,736.80 NEUTRAL
DJIA 0.31 23,400.8 UP
choppy throughout the day as investors cautiously awaits the
MSCI W 0.11 2,025.69 NEUTRAL
2018 Budget. Meanwhile, O&G stocks could attract a following
MSCI AP (-0.33) 683.93 NEUTRAL
after oil price gained strength. Technically, we expect FBMKLCI to
FCPO 0.29 2,813 UP
trade between 1,732 and 1,745. Downside supports are 1,729 and BRENT 1.47 59.30 UP
Malaysia

1,713. GOLD (-0.71) 1,266.30 DOWN

USDMYR (-0.02) 4.2345 NEUTRAL

(Sources: Bloomberg)
TODAY’S HIGHLIGHT – BURSA MALAYSIA CONSTRUCTION INDEX (KLCON INDEX) – POSITIVE DIVERGENCE
Bursa Malaysia Construction Index (KLCON Index), as opposed to our earlier prediction that it will be able to
hold on above 323 (refer to Regional Traders’ Almanac 20171023 edition), fell to a low of 321.00 instead.
However, the recovery was swift and the candles formed a bullish candlestick reversal pattern “Above the
Stomach” along the way. The rebound also reaffirms that the 38.2% Fibonacci Retracement level at 321.00 is a
crucial support, which coincidently, also falls at the downward slopping support channel line. Now that
Stochastic has staged a positive divergence, we believe the upward momentum will gain more traction. A
positive close above 329.50 will validate our view. On the flip side, if the 321.00 level fails to hold, the
following supports are 313.00 and 306.00.

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

BINA PURI HOLDINGS BERHAD, DAILY CANDLESTICK CHART (MYR0.38)

STRATEGY:
ACCUMULATE (TECHNICAL)

Share price may have

bottomed out at the
MYR0.325 low.
Yesterday’s breakout is
likely a prelude to more
upside ahead. Our view is
also reflected by the
positive Stochastic and
MACD readings.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.370 ~ MYR0.390 BELOW MYR0.350 MYR0.400, MYR0.460 8 weeks

EFFICIENT E-SOLUTIONS BERHAD, CANDLESTICK CHART (MYR0.425)

STRATEGY:
ACCUMULATE (TECHNICAL)

The correction from

MYR0.59 high may be at
its tail-end, particularly
after the formation of a
major bullish reversal
pattern “Cup and
Handle”. We believe the
next up leg is likely
underway.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.420 ~ MYR0.430 BELOW MYR0.390 MYR0.500, MYR0.560 8 weeks

October 27, 2017 2

Technical Research

COMMODITY & DERIVATIVES WATCH

CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,811)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FCPO for
intraday trading.

FCPO continued to gain

strength, ignoring the
negative divergence on
RSI indicator. That said,
we opine that it still has
enough firepower to
challenge the upper
resistance in the near-
term.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

MYR2,796 MYR2,744 MYR2,833 MYR2,887 UP UP

KLCI INDEX FUTURES, SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,735.00)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FKLI for
intraday trading.

FKLI is still in
consolidation mode but
downside risk looks
limited. We believe
rebound is on the cards,
and it is only a matter of
time before it challenges
the resistance again.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

1,731.50 1,723.00 1,748.00 1,754.50 REBOUND UP

October 27, 2017 3