■ Expectations of a US Fed rate hike in mid-Dec 2015 has have led to firmer markets in the US American bourses and a buoyant US Dollar index.
■ As such, foreign funds continued to sell Asian equities on rallies as we approach the Fed’s potentially hawkish move in mid-December.
■ Top SELLs: PT Salim Ivomas Pratama Tbk (SIMP IJ), Thaicom PCL (THCOM TB), EEI Corporation (EEI PM), Global Logistic Properties Limited (GLP SP), UEM Sunrise Berhad (UEMS MK), Ho Chi Minh Securities Corporation (HCM VN) and Huaneng Power International Corp (902 HK).
• The DJIA’s rise to its Aug 2013 high of 15,658.43 was a weekly Elliott Wave 3. After that high, the index corrected down its weekly Wave 4 low of 14,719.43 (Oct 2013).
• From that 14,719.43 low, the DJIA extended upwards to a new all-time high of 18,351.36 (19 May 2015). After the high of 18,351.36, the DJIA fell to a low of 15,370.33 (24 Aug 2015). Since that low, the DJIA has rebounded from there and is poised to head higher.
• Support areas will be zones to buy, while some liquidation at the resistance levels may be wise. Most of its weekly indicators are positive with the exception of the DMI.
• 18 and 40 simple moving averages (SMA) depict a firm uptrend on its daily, weekly and monthly charts.
• The DJIA had peaked at its all-time high of 18,351.36 and plunged to a recent low of 15,370.33 on 24 Aug 2015. The index looks set to test its all-time high yet again.
• A “Buy on Dips” strategy for the DJIA for the next month. Prices may test the indicated resistance levels above as obvious downside risks have diminished since the Aug 2015 low of 15,370.33. (Read Report)
Source : Maybank Kim Eng Research