Monthly Archives: January 2013

Stock to Watch: AeonCr [5139]

After appreciating by a staggering 400+% in less than 2 years to an all-time-high of RM13.72, funds that are involved began to take profit. While the long-term uptrend was only violated in early January, sign of long-term reversal was revealed earlier in December when it formed a lower high.

As a contrarian, I would not shun this counter just because it is on a downtrend. In fact, downtrend stocks are sometimes good to trade because they provide not just the margin of safety but also more information on all possible explicit and implicit support/ resistance. Greater insight on a fund’s intention could be obtained as well by studying the price and volume on each minor waves that form the major trends.

Let’s look at the reasons why I think Aeoncr is an attractive buy at the moment.