In an earlier post (here), I was anticipating NSTP to swing up to RM1.50, i.e. testing its medium-term downtrend line. To wit,
"The stock seems to have completed a rounding bottom at about the RM1.00 level. It has broken above its immediate downtrend line at RM1.05 level but has yet to break above its medium-term downtrend line, with resistance at RM1.50-55 level."
Sadly, this did not happen. While NSTP did put in a short rally to RM1.30-33, that run was short-lived & without volume. With the daily MACD hooking down, it is likely to the share price will drift lower. Support can however be seen at RM1.00 & RM1.10 level. See charts below.
Chart 1: NSTP's daily chart as at 15/5/2009 (Source: Quickcharts)
Chart 2: NSTP's daily chart as at 15/5/2009 (Source: Tradesignum.com)
Based on weakening technical outlook & unexciting financial performance, NSTP is likely to remain a poor performer for the near-term.
2 comments:
hi Alex,
Is nice to see you again. Could you pls offer some advice of IRIS?
Eventually i will judge myself! :)
Hi Herbert,
Iris is a promising company which has consistently failed to live up to its promise. Years of poor financial performance has left investors with a jaded view of this stock. Try telling someone that a subsidiary of 3M had recently reached an out-of-court settlement with Iris on a suit brought by Iris against an unauthorized use of its proprietary technology and all that you are likely to get is a shrug. So, what's new? Sad, indeed.
How do you approach a stale stock like Iris? Unless there is a fundamental change in the management team, I would think you should look at Iris as a 2nd & 3rd liner stock that has put up for a play. How long will this play last is an unknown. One may notice that price & volume data are showing bearish divergence, with higher prices recorded on May 14 & 15 on lower volume. This could be a sign of weakness in the current rally, thus signaling a potential temporary top.
Iris is likely to move in line with other 2nd & 3rd liners. So, if these stocks are showing signs of weakness, you cannot expect Iris to rally higher. Or, vice versa. Depending on your reading, you may take advantage of the current rebound to take some profit at RM0.21-22 level, or even at lower prices after a lapse of some time. One should not aim for the recent high of RM0.225 to sell because these prices are decoys, meant to seduce unrealistic players. In addition, recent highs are normally where stale bulls await incoming buyers and as such, are natural resistance where many sellers are lined up. Unless the buying is very strong, an order to sell at this level is likely to be unfulfilled.
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