JKH - must stay above 153-156 to trend higher in the short term

JKH to breakout of 165, it must hold between 153 and 156 range. As we can see it's trading above that range, we could see a re-test at 165. If the strength is strong enough to break out above 165, it could head higher.

ASI - Heading down to test - 6400-6430 points

ASI couldn't hold on to 6456. Now heading down towards 6400-6430. This is an important area as it is within the 50-61.8% fib retracement area of the previous up move. I expect that range to be respected. Failure to hold that will expose the previous low of 6316 points.

ASI - would test 6456, then reverse upto 6600

The present retracement in the ASI will test 6456, thereafter will reverse to test 6600. Break out from that would take it upto 6680.

Balangoda Plantations Plc - BALA.N.0000. Risk 2/50 to Gain 9/50

Balangoda too is in a correction and at present entering it at 30/50, will risk 2/50 to gain 9/50. This counter will 1st test the Gap Resistance between 34 and 35 before its rally to test 40.
As long as commodity markets in the world flourish their produce will follow suit, which will help their bottom line, and sentiments. Traders should not ignore this counter.

Maskeliya Plc - MASK.N.0000, Testing the Gap Resistance. Breakout could take it up to test 28.00

After a massive rally in 2017, the counter is in a major correction. Once done we will see new highs. But before that it is checking in a Gap Resistance between 22 and 23.20, once complete it could test 24 as the near resistance and 28 as the distant test. There after with strong growth potential it would move higher. As there is a strong support at 19, if any one wants to collect at the present levels, should know that the down side risk is only 3 rupees.

Tokyo - Collect

Tokyo had to face a lot of resistance as one of their major share holders divested its holding. We saw this strong selling forcing the bulls to form a fierce support between 57.50 and 63.50 for a period 7 months. There after the counter rallied to a high of 78 in a matter of 5 weeks, since then the supply kept the price under check from Apr '17 to date in a range bound trend between 60 and 78. Presently it's trading towards the low end of the range. Once the accumulation is complete the counter will take off to strongly break out of 78. Before that it will test resistance by short term players at 68,70, 75 and 78. The 6 to 12 month expectations would be to test 85 to 90, completely supported by strong growth expected in the year. If anyone ENTER it at 65/66, you have a ROI running up to 38% WITHIN the next 12 months.

ASI - Weekly Update....heading towards 6700 Resistance, Get in!!! Avoid Regrets!!!

Normally we were taught that the Foreign Fund Managers and the Local Institutional Investors/Funds start buying from/after the 2nd week of the 1st month i.e. January for the New Year. But it is different this time. The Foreign Funds have started shopping from the very 1st week. Amongst their  picks there are 4 banks, and 4 large cap stocks. If you want to know who they are click on : https://gallery.mailchimp.com/e967ee100b16f124932888c5f/files/ab66a505-a2fe-4587-8412-7ecb80c1a185/WeeklyChangeinForeignHoldingofSharess_05012018.pdf

REMEMBER THIS!!!
If the Foreigners are collecting, they are bullish not only on the Sri Lankan Market, instead they are bullish on the Emerging and Frontier Markets as well. What is important for us is that IF they have allocated funds for Sri Lanka, amidst their overall weight-age towards EMs and FMs, THAT IS SERIOUS BUSINESS.  As long as this trend persists then my friends expect this market to hit higher.
FOLLOW THE FOREIGNERS NOT THE LOCALS.

The week just finished saw the ASI hitting a gain of 145 points against the last weeks gain of 50 points. The market thus have increased 2 weeks in a row, after a stretch of weekly drops for 10 straight weeks. 3 big banks and the largest conglomerate are leading in front, which is very bullish.

ASI will test the resistance between 6627 and 6770 during this uptrend, and do not regret for not getting on board timely. Stocks to pick will be covered in my other posts expected today and tom.