Chart 1: SSEC's daily chart as at 29/9/2009 (Source: Stockcharts.com)
A look at the weekly chart below revealed the following:
1. The 10-week SMA has curved downwards while the 20-week SMA is now flattening out.
2. The weekly MACD has done a negative cross-under.
3. RSI has pulled back significantly & is now below 50.
4. The -ve DMI is attempting to cross above the +ve DMI, which could signal the beginning of a new downtrend.
The last time we saw the congruence of the same signals was in November & December 2007, which was the top for SSEC. Can the same thing happen again? Yes, especially if SSEC index break below the 2700 level.
Chart 2: SSEC's daily chart as at 29/9/2009 (Source: Stockcharts.com)
6 comments:
Hi Alex,
Can you comment about Dutanland? Tx
Hi Alex,
Can you comment about SAAG as well. Is that the company still have potential?
Hi Teh,
SAAG made a small pre-tax loss of RM2.5 million in QE30/6/2009. Its turnover dropped to RM59 million from a high of RM185 million in QE31/12/2008.
Technically, it may test its strong horizontal support at RM0.18-20 before bottoming process kicks in.
Hi Alex,
Tx for ur comment.. then how about the Dutaland?
Hi Teh,
There is a recent favorable news item for Dutaland. UNP Plywood Sdn Bhd (‘UNP’), a subsidiary of DutaLand won a legal suit claiming RM128,673,270 for losses arising from wrongful termination of two timber extraction and purchase agreements entered into between UNP and Sabah Forest Industries Sdn (‘SFI’) on 28 June 1993 and 13 August 1993 respectively. Whether UNP will ever receive the amount awarded is another question.
Chartwise, Dutaland is now resting on its uptrend line support at RM0.55-56. This could be a good entry level to the stock.
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