September 7, 2017

TRADERS’ ALMANAC
S&P 500 Index: Support Remains Firm
 S&P 500 & VIX INDEX – Current correction is still healthy Analysts
Nik Ihsan Raja Abdullah, MSTA, CFTe
 MUAR BAN LEE GROUP – Buying interest emerged
(603) 2297 8694
 GLOBAL ORIENTAL – Potential breakout above downtrend line
nikmohdihsan.ra@maybank-ib.com
 CRUDE PALM OIL – Minor pullback
Tee Sze Chiah
 KLCI INDEX FUTURES – Upper resistance to be challenged
(603) 2082 6858
szechiah.t@maybank-ib.com
Market Overview
FBMKLCI bucked the regional downtrend to end the day 2.85pts Market Summaries
TECHNICAL

higher at 1,772.48. Market breadth, however, was mixed with Index Changes (%) Close Momentum
losers outpacing gainers by 419 to 418. A total of 2.21b shares FBMKLCI 0.16 1,772.48 NEUTRAL
worth MYR1.81b changed hands. With US markets ended firmer DJIA 0.25 21,807.6 DOWN
overnight after President Donald Trump and lawmakers reached a MSCI W 0.23 1,959.15 DOWN
deal to extend the deadline on the debt ceiling by three months, MSCI AP (-0.35) 657.25 DOWN
local bourses could benefit from the positive spill-over. However, FCPO (-0.83) 2,744 DOWN
we expect FBMKLCI to remain volatile amid worries over BRENT 1.54 54.20 UP
geopolitical tensions. The benchmark index could trade between GOLD (-0.40) 1,335.20 UP
1,760 and 1,780 today. Downside supports are 1,748 and 1,729. USDMYR (-0.50) 4.2387 DOWN
Malaysia

(Sources: Bloomberg)

TODAY’S HIGHLIGHT – S&P 500 INDEX VS. CBOE VIX INDEX – CORRECTION OR REVERSAL?
Based on our earlier analysis on CBOE VIX Index (refer to Regional Traders’ Almanac dated 14 Aug 2017), we
anticipated the Aug correction in S&P 500 Index to be short-lived. The index indeed bounced off the 90-day
EMA line, and formed a strong support at 2,420, keeping its longer-term uptrend intact. Recent correction
could once again challenge this support and premised on existing technical reading, it appears that this
correction would once again be temporary. Having said so, should the 90-day EMA line fail to hold, and
subsequently the 2,400 psychological supports, we expect the upward trajectory to reverse and a bigger
correction could be forthcoming. All said, the current correction is still healthy but traders will need to
monitor the key support levels.

S&P 500 Index vs. MSCI World Index vs. MSCI Asia Pacific ex Japan Index

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

MUAR BAN LEE GROUP BERHAD, DAILY CANDLESTICK CHART (MYR1.10)

STRATEGY:
ACCUMULATE (TECHNICAL)

Share price surged above

the “Ichimoku Cloud” on
the back of higher volume
yesterday. Together with
the positive readings in
both RSI and DMI
indicators, we expect the
uptrend to extend towards
the next resistances at
MYR1.17 and MYR1.27.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR1.08 ~ MYR1.10 BELOW MYR1.02 MYR1.17, MYR1.27 8-week

GLOBAL ORIENTAL BERHAD, DAILY CANDLESTICK CHART (MYR0.39)

STRATEGY:
ACCUMULATE (TECHNICAL)

Share price is challenging

the resistance trend line.
With trading volume
picking up, coupled with
positive readings in both
RSI and Aroon indicators,
we expect a new up leg to
take place soon.
Resistances are MYR0.425
and MYR0.470.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.385 ~ MYR0.395 BELOW MYR0.350 MYR0.425, MYR0.470 8-week

September 7, 2017 2
Technical Research

COMMODITY & DERIVATIVES WATCH

CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,744)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FCPO for
intraday trading.

Selling pressure accelerated

after FCPO failed to swing
past the MYR2,782
resistance. However, given
the “thickness” of the
“Ichimoku Cloud”, we
expect FCPO to be
supported at MYR2,705.
Overall, the uptrend is still
intact.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

MYR2,705 MYR2,671 MYR2,782 MYR2,800 PULLBACK UP

KLCI INDEX FUTURES (FKLI), SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,766.50)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FKLI for
intraday trading.

FKLI managed to bounce

back after early selldown.
As momentum picks up, we
expect the index to charge
towards the upper
resistance soon.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

1,759.00 1,755.00 1,768.50 1,773.00 REBOUND UP

September 7, 2017 3