Tanjung Offshore Bhd ('TGOFFS') won a RM70 million contract from Petronas Carigali Sdn Bhd for the provision of wellhead maintenance services for Sabah, Sarawak and Peninsular Malaysia operations. This announcement has prompted a sharp jump of 13 sen in TGOFFS's share price to close at RM1.20 at the end of the morning session. With this, TGOFFS has broken above its medium-term downtrend line resistance at RM1.10 as well as its long-term downtrend line resistance at RM1.15. See the daily & weekly charts below.
TGOFFS's next resistance levels are at RM1.70 & RM2.00.
Chart 1: TGOFFS's daily chart as at Jan 6, 2010_12.20pm (Source: Quickcharts)
Chart 2: TGOFFS's weekly chart as at Jan 6, 2010_12.25pm (Source: Quickcharts)Based on technical consideration, TGOFFS could be a good trading BUY.
4 comments:
Hi Alex
I appreciate all the knowledge and tips you've shared.
Based on your good knowledge, how long do you think one could hold this stock as I also came across some analysts having a negative comment on TGOFFS because of their concerns over its UK subsidiary. Do you think that would be a set back? Having read that, I still believe that this counter is a good one based on the number of contracts awarded.
Thanks in advance,
Ben
hi alex , i am bough this share at quite high price . it is 1.32. thinking to avg down it. because cut loss cause me loss money. i saw the diagram you draw . that is the peak and low . really interest on learn how you analysia the diagram .. i am the newbie here.
Hi Benny,
I had a quick glance at the financials of TGOFFS. It incurred a net loss of RM10.3 million for QE30/9/2009 due mainly to ongoing late charges payments and escalation costs in completing the remaining waste heat recovery packages manufactured by CERS. To be frank, I do not know how much more this contract would affect TGOFFS.
However, technical analysis can provide some ideas as to this. If the price starts to recover, chances are that the worst could be over.
Hi Jack,
This is a late reply because I did not see your comment earlier. Since then, the price has dropped back to RM1.21 (as at Jan 21).
With the market sliding off, I think you can hold off buying this stock. A good entry level is at RM1.00-1.10.
As a new investor, you should invest in acquiring knowledge, such as fundamental analysis (try Graham & Dodd) and technical analysis (try John Murphy). Avoid the bad habits of listening to tips. Even calls made in this blog should be investigated independently before acting on them. Investing, if done properly, can be very fulfilling.
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