The KLCI Index is trading at a very critical level on which we can see on technical charts, after breaking the long term up tried the KLCI index managed to hold the Bears near 1750 levels
The benchmark of Malaysian equity market KLCI index gave a short bullish movement after four weeks of losses. The KLCI index had gained 5.73 points last week which is a short bullish movement. The KLCI index was encountering a constant sell off except last week where it manages to set off the losses of past weeks after taking support near 1750 levels.
On the technical ground, the KLCI index is still looking weak and the bears are still in control of the market as they are not letting bulls take over and give a good positive movement. The index is at a very critical level and if the index will break the level of 1750 in coming trading session then it can reach near to the levels of 1730 in near term.
However the global economic situation and the performance of regional markets and economies can manipulate the market sentiments and as the market is at a very critical stage the big question which comes after the breakout of the long term bullish trend that is it the time for bears or the bullish will again rescues the market will stay intact until any movement which can break the level of 1800 or 1750 as the breakout of these support and resistance level will confirm any further movement.
On this very volatile scenario, there are still some counters which have potential to give a positive movement in near term. On the basis of technical and fundamentals analysis, there are the stocks to watch next month.
1. AIRASIA BERHAD (5099)
With a market capitalization of near RM11 billion, Airasia is amongst the big players in Malaysian stock market. After the latest quarter negative performance the counter had dropped from its high of 3.59 to the low of 2.89 but now it again started to give positive movement by following the short term bullish trend.
On technical ground the nearest breakout in the counter above the level of 3.32 will clear the trend of the counter as impulsive waves are done and after sustaining the long term bullish trend line the counter is again trying to breach the level of 3.30 and the breakout of 3.32 can results in a high of 3.40 than 3.55 in near term.
2. MY E.G SERVICE BERHAD (0138)
With an attractive ROE of near 38% and constant performance on quarter on quarter, MYEG is one of the most attractive and reasonably priced stocks in Malaysian equity market.
The company is constantly performing good and giving positive results from last six years which is a very impressive point along with the improving margins which make this counter a must have in every investment portfolio.
On the basis of technical analysis, the counter is at consolidation phase and the breakout of 2.20 is a point where one can enter in the long position in the counter with trailing stop loss.
3. INARI AMERTRON BERHAD (0166)
The company recently posted a triple digit growth in profits on quarter on quarter basis. After a relatively flat year, the company is performing well this year by giving a constant increase in revenues and margins which we can see in the quarterly reports of the company. Along with that on technical charts, the counter is following a bullish trend and it recently gave a breakout after the correction which makes this counter an attractive investment option.
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