MPI broke above its trading band of RM5.00 & RM5.70 on July 27 (see Chart 1). It is now testing the long-term downtrend line resistance at RM6.20 (see Chart 2). A break above the downtrend line could be the start of an uptrend for MPI. MPI hsa been lagging behind its rival, Unisem which rose from a low of RM0.45 on March 17 to yesterday high of RM1.75. Similarly, you can see from Chart 3 that the Philadelphia Semiconductor index, SOX has broken above its long-term downtrend line yesterday.
Chart 1: MPI's daily chart as at July 30, 2009 (Source: Quickchart)
Chart 2: MPI's weekly chart as at July 30, 2009 (Source: Quickchart)
Chart 3: SOX's daily chart as at 30/7/2009 (Source: Stockcharts.com)In conclusion, MPI could be a trading BUY if it can break above the RM6.20 cinvincingly.
2 comments:
Alex,
Hope you dun mind to do a TA on FAJARBARU BUILDERS for me.
Thx in advance.
Hi Surewin1woh,
Fajar has a strong resistance at RM1.15. While it did make a high of RM1.17 a few days ago, it did not go further.
If it can surpass the RM1.15 level convincingly, the stock is a buy. You may want to let it surpass the last 8 year high of RM1.20 (recorded in March 2005) before adding further to any position you may have in this stock.
Fajar is linked to the LCCT expansion project, with estimated contract value of RM2 billion. See the AmResearch report (link provided below)/.
http://www.fb.com.my/images/AM120609.pdf
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