Category Archives: AeonCr

Stock to Watch: Aeoncr [5139]

Despite the local index edging up slightly, the overall sentiment of our market continues to be weak today, with the ratio of losers to gainers stands at a high of 2.18. The uncertainty of the result of the coming election is inducing most of the market participants to “sell on strength”, causing most shares that have rose dramatically in the past few months – property stocks especially (e.g. Tebrau, KSL, UEMLand) – to begin reversing, thereby forming the “wave a” of Elliot Wave (The first leg of the downtrend that follows the 3-waves uptrend). Property play is not over yet but at the moment, with the current weak market sentiment, it is definitely not safe to enter into a position. We will take a brief look on Aeoncr [5139] instead, which is also beginning to reverse from its 3-months uptrend.


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.