A blogger, Sensesen thinks so.So he has asked us to watch the following counters if we want to pick some on the way down. He has suggested chiefly the lower liner steel and construction-related stocks particularly Sino Huaan, Kinsteel, Perwaja, MRCB, Ranhill and UEM Land.He expects these as top technical picks to out-perform the broader market.
An overpriced Wall Street is currently expected to undergo deep correction before the second leg up theory of Warren Buffet can take place. As such Bursa and Far-East markets are unexpected to follow suit. Nonetheless, Sensesen expects profit-taking to be shallow given that most investors would have sold on the rally the previous few weeks, and are looking to buy back upon a more significant correction. He anticipates core blue chips to consolidate while buying interest shifts towards lower liners on active rotational plays.
On blue chips, investors should consider buying on dips, defensive gaming stocks Genting Bhd and Genting Malaysia given that the H1N1 virus scare has pressured share prices down to bargain levels. Sensesen also suggest that we look out on Kencana and Wah Seong, as well as to buy DNP, Hovid, Leader and RCE Capital on any profit-taking dips.
As for the KLCI, immediate support upon correction is set at 1,180, with 1,171, then 1,164 and 1,156 acting as stronger support platforms. On the upside, the significant upside hurdle will be at the 1,200 psychological level, which requires a bullish breakout to aid further upside towards 1,220, and then 1,248, which represents the 61.8 per cent FR of the fall from 1,525 all-time high to 801 pivot low, acting as a major resistance.
It makes sense,Sensesen!
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