Monthly Archives: July 2013

Stock-to-Watch: UEMS [5148]

A bad ending it was for the month of July as the market extended its losses by another 22.46 points, after Fitch’s revision of Malaysia’s outlook prompted foreign investors to liquidate their holdings in Malaysia. To-date, the market had suffered a blow of around 40 points since 24th of July, the day our market closed at a high of 1810. This is the perfect opportunities for us to grab some of the fundamentally good stocks at favorable price, so don’t fret.

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Stock To Watch: Alam [5115]

Alam, one of the most popular small-cap oil and gas company, had recently formed a beautiful pattern which traders like a lot. After consolidating for around 2 months, price broke above the huge triangle on the 16th of July with substantial volume. The momentum continued for another day, where we see the share price of Alam broke the 1-year high at ease and closed at RM1.58 before it retraced to lower price levels on subsequent days. By joining the highs and lows for the past few days, we could see an obvious triangle. Price never close below the RM1.52 support line during the formation of the triangle and the lows were moving higher each day, indicating that the bull were in-charge. Once the share price moves above the upper line of the triangle, it’s a buy. Traders could also see Alam as forming a pennant (a combination of the 2 up days and the triangle), of which the buy decision would be the same as the triangle pattern. The relatively low volume during the formation of the triangle compared to the 2 up days means that it is very likely that the share will break above the upper line.

alam

Do trade cautiously as the market is getting weaker.

Stock to Watch: GAB [3255]

The composite index edged higher today with oil and gas counters getting most of the attraction (Perdana, Penergy, Alam, and Dayang). Looking at the current market sentiment, the index is expected to stay strong and will re-test the 1793 resistance level again in days to come.

The focus of today’s discussion would be on GAB [3255], a brewing company which had dipped by more than 20% from it’s highest high in just a month. Investors who kept on adding their position as the share price eased are now worrying that their decision to buy could be a huge mistake. If you fall into this category of people, let me assure you that the share is about to rebound very soon. So don’t fret. As for the others who are looking to take a position… let us look at the chart first.

gab

Stock to Watch: Malton [6181]

To be able to profit consistently from the market, one must not only be aware of  the recent happenings but also understand the consequences of the recent price development towards the possible changes in the big picture and be flexible enough to alter his view accordingly. Let’s look at Malton, a property share which by looking at it’s recent price development, has a good chance of going above RM1 within a few weeks. To grasp a clearer picture, we have to begin our analysis from the 25th of June.

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Stocks to Watch: Benalec, Cliq, GOB, Malton, Tuneins, Ytlland

Despite distribution activities happening in a few index-linked stocks, the market sentiment was pretty good today, with a huge number of shares breaking above their short-term swing high after ‘testing the supply” (VSA methodology). In case you don’t understand, it means BULLISH, BULLISH, BULLISH! Let’s skip the talking and look straight at the chart of some of these counters.

benalecBenalec – Closed above RM1.37, forming a Double Bottom.

KLCI: Getting Weaker

Yes. You read the title correctly. W-E-A-K.

While it’s not entirely bearish yet (the index edged only slightly lower today and the losers outnumbered the gainers just marginally, so for some people there’s still HOPE… Hey! It’s time to wake up!) several signals show that the bears are about to launch an aggressive attack on our market in days to come. If you are an active trader, you would have notice that majority of the shares that have rose for the past few days are starting to reverse. Some are even approaching lower support levels already. For shares that still manage to hold up, the momentum is obviously fizzling out. With the smart money booking in their profit since the first trading day of July, there is no way the market is going to move higher, especially when the regional peers are falling. A correction is needed before traders and investors are willing to take fresh position again. Let’s take a look at the chart.

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