September 28, 2017

Traders’ Almanac
Shanghai Steel Futures:
Buying Interest Emerges
 SHFE HOT ROLLED COIL – Recovery mode Analysts
 MYCRON STEEL – Strong support established Nik Ihsan Raja Abdullah, MSTA, CFTe
 LEADER STEEL HOLDINGS – Stronger rebound underway (603) 2297 8694
nikmohdihsan.ra@maybank-ib.com
 CRUDE PALM OIL – Range-bound trading
 KLCI INDEX FUTURES – The bull has upper hand Tee Sze Chiah
(603) 2082 6858
TECHNICAL

Market Overview szechiah.t@maybank-ib.com

FBMKLCI fell for the seventh conservative day after easing 1.35pts
Market Summaries
to close at 1,764.24 yesterday, led by declines in GENT, WPRTS
Index Changes (%) Close Momentum
and CIMB. Market breadth, however, was slightly positive with
gainers outpacing losers by 401 to 376. A total of 2.21b shares FBMKLCI (-0.08) 1,764.24 DOWN
DJIA 0.28 22,340.7 UP
worth MYR2.15b changed hands. With selling pressure tapering off
MSCI W 0.24 1,988.00 UP
coupled with gains in overnight US markets, there is a glimpse of
MSCI AP 0.24 660.78 UP
hope that market may stage a rebound today on bargain hunting
FCPO (-0.07) 2,747 DOWN
activities. That said, O&G stocks may take a breather on weaker BRENT (-0.92) 57.90 NEUTRAL
Malaysia

oil prices. Technically, we expect FBMKLCI to trade within 1,760 GOLD (-1.05) 1,284.10 DOWN
to 1,775 today. Downside supports are 1,760 and 1,751. USDMYR 0.36 4.2215 UP

(Sources: Bloomberg)

TODAY’S HIGHLIGHT – SHANGHAI FUTURES EXCHANGE HOT ROLLED COIL, UPTREND TO RESUME
Listed on the Shanghai Futures Exchange, the benchmark price of hot rolled coil (HRC) futures hit a high of 4,400
in Sep 2017 before correction kicked in. Despite still in a consolidation mode, we believe the short-term
downward pressure has dissipated. The candles have bounced off from the 61.8% Fibonacci Retracement level and
the 72% AWJ line at 3,770-3,850, and are currently treading above the “Ichimoku Cloud”. Note that Stochastic
indicator has also staged a bullish crossover. The confluences of these positive readings indicate that a stronger
rebound is likely underway, with resistance seen at 4,150-4,230. That said, if the candles violate the 3,770
support, our bullish stance would be nullified.

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

MYCRON STEEL BERHAD, DAILY CANDLESTICK CHART (MYR0.790)

STRATEGY:
ACCUMULATE (TECHNICAL)

MYCRON tested the

MYR0.73 support
numerous times over the
past ten months. With
MACD and Stochastic
indicators showing
positive readings, we
believe the stock is poised
for a stronger rebound.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.780 ~ MYR0.800 BELOW MYR0.730 MYR0.895, MYR1.03 12 weeks

LEADER STEEL HOLDINGS BERHAD CANDLESTICK CHART (MYR0.670)

STRATEGY:
ACCUMULATE (TECHNICAL)

The correction from

MYR0.74 high may have
ended. As share price
bounced off from the
MYR0.605 low, we believe
a stronger rebound is
likely underway.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.650 ~ MYR0.670 BELOW MYR0.605 MYR0.740, MYR0.825 8 weeks

September 28, 2017 2

Technical Research

COMMODITY & DERIVATIVES WATCH

CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,747)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FCPO for
intraday trading.

FCPO has closed the gap

but we believe strong
resistance lies ahead. In the
near-term, FCPO would
likely trade range-bound as
indicators show mixed
readings.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

MYR2,718 MYR2,685 MYR2,783 MYR2,831 SIDEWAY DOWN

KLCI INDEX FUTURES, SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,755.00)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FKLI for
intraday trading.

FKLI is still in a
consolidation mode.
However, as momentum has
picked up, we believe the
bulls have the upper hand
here.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

1,755.00 1,751.00 1,769.50 1,777.00 REBOUND NEUTRAL

September 28, 2017 3