Chart 1: Mamee's daily chart as at Jan 18, 2010 (Source: Tradesignum)
From the monthly chart (Chart 2) below, we can see Mamee broke above its long-term downtrend line (RR) at RM1.45 in August last year. With the breakout above the recent high of RM2.30, Mamee's next horizontal resistance will be at RM3.00. I feel that Mamee's uptrend from October 2008 until today fits quite nicely into 5 waves according to the Elliot Waves theory. The stock could be in the fifth wave, i.e. the final impulse wave before the uptrend reaches its peak (unless there are wave extensions). The fifth wave is a very tricky wave & often doesn't unravel perfectly. While it may overshoot, it may also drop suddenly & sharply.
Chart 2: Mamee's monthly chart as at Jan 18, 2010 (Source: Tradesignum)
If you have strong nerve, you can consider Mamee, especially if it pulls back to RM2.30. For more on Mamee, go to my earlier post. Mamee had completed a 4-for-5 Bonus Issue in November last year.
12 comments:
i had been following your blog for some time, and i personally think that your analysis of stocks is great.
al the best.
Hi Alex,
May u pls provide TA for AnnJoo for the immediate term. What about her warrant...
Thx in advance.
Hi Alex. How about MTONE ? Can buy now ?
can u mix TA and FA? im sure mamee going up bc of good fundamental is continuing.
Do you think Supermx n etc glove stock will move b4 Q4 is announced?
HI surewin1woh,
AnnJoo's immediate horizontal resistance is at RM3.40 & RM3.60.
The warrant may hit RM1.00-1.10, if the premium does not creep up.
Hi wong,
The chart of MTONE tells me to avoid the stock. In addition, it is an affected issuer of Bursa Malaysia’s Guidance Note 3 (GN3) which required to submit a regularization plan by August this year.
MTone had defaulted on debt and interest payments due to operational difficulties in the past two quarters, lower trade facilities, decline in sales and low margins.
Hi Musang,
Your comment is noted.
Hi cheer,
To be frank, I don't know. You may be thinking that if the good results keep on rolling in, the share price should keep on rising. That may not necessary be the case. Take a look at Topglove's net profit track record from 2001 until today (see the link below). Even though the bottom-line continued to rise uninterrupted in the past 10 years, Topglove's share price peaked at RM10.00 in December 2006 before hitting a low of RM3.50 in January last year.
So, I don't know whether this sector is currently undergoing a short correction- in which case you may jump in after a few days- or it may be something more severe.
My main concern is a top for this sector- be it a temporary top or a secular top. Some stocks have gone up 400-500% (eg. Latexx & Supermx) and they may be susceptible to severe correction once the trend reversed.
Hi Cheer,
Check out this link, which I had forgotten to attach earlier.
http://nexttrade.blogspot.com/2009/10/topgloves-results-justified-its-high.html
Hi tan,
Thanks for your generous compliment. I believe that in a bull market, one appears smarter than what he actually is and in a bear market, one appears dumber than what he actually is. We all have our good days and hopefully they would out-number the not-so-good days, which will eventually come.
Good luck to investment.
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