Tag Archives: resistance

Stock to Watch: Benalec [5190]

Led by panic selling across Asia market (WHY? Click here to find out), KLCI gapped down by 15 points in the evening session, widening the difference in the number of gainers and losers. Instead of making an analysis on the local index, we shall discuss on the price movement of Benalec, a good stocks to trade because it is one of the most “obedient” shares that respect all the main supports and resistances. Also, since the share price has been moving sideway for 2,3 years (long-term trend), its effective trading range is clearly provided and thus the price movements are more predictable in the intermediate term. Let’s begin our analysis.

benalec

Stock to Watch: Skpetro [5218]

Being Malaysia’s first full-fledged EPCIC (engineering, procurement, construction, installation & commissioning) player and the fifth largest EPCIC company by assets in the world, this giant deserves our attention. SapuraKencana Petroleum’s wide range of services, which is comparable to global players such as Technip, J.Ray McDermott and Saipem, and its strategic partnership with global oil and gas (O&G) players such as Seadrill, Subsea 7 and Quippo have enabled the company to gain a strong foothold in the international O&G market. It’s global presence, coupled with the liquidity and wavy movements of its shares, provides traders ample of opportunities to profit and thus we would definitely want to have this share in our watchlist. Let’s analyse the chart together.

skpetro

Padini [7052]: Ready for a Huge Directional Move

Padini’s year-long uptrend was broken in September and had been on a downtrend since. The wide swings during the downtrend offered a number of opportunities to believers of short-term mean-reversion and experts in candlesticks pattern. The downtrend ended in early December after completing the falling 5-way sequence of the Elliot Wave and it’s share price has been moving sideway since.

Padini
The range which the share price has been trading for the past 3 months is tightening slowly and is converging at around the Fibonacci confluence zone of RM1.82. This is not surprising given that Fibonacci confluence zone, being the price level where multiple Fibonacci ratios align, has always been the level where price equilibrates in the medium term. The price movements of Padini for the past 1 year have successfully form a D-shape, which according to Robin Mesch signals the end of a cycle of market activity and the beginning of a new one. This essentially means that the share price is poised to make a huge directional move and it is expected to happen anytime soon given that price has been moving sideway for 3 months. Such time prediction is in accordance to Gann’s observation that “majority of trends occur in time period of 3 (3 days, 3 weeks or 3 months)”.