The market saw strong rally among the rubber glove manufacturers, semi-conductor assemblers & hard-drive component producers. A few stocks surpassed their recent high & charged higher, such as Topglove, Supermx, Unisem, Gtronic & Eng. Others broke above their short-term downtrend line & rallied, such as Lityan & Penta. The play on technology stocks has even ignited interests in Time.com, which broke above its strong horizontal resistance at RM0.45-46. Its next resistance is at RM0.55-56. See Chart 1 below.
Chart 1: Time.com's weekly chart as at Mar 24, 2010 (Source: Quickcharts)The stock that we should be watching is JCY, the newly-listed giant hard-drive component manufacturer. This stock broke above its horizontal resistance at RM1.64-65 today. It gained 8 sen to close at RM1.68. I believe JCY will participate in the on-going play among technology stocks.
Chart 2: JCY's 30-min chart as at Mar 24, 2010 (Source: Quickcharts)
4 comments:
Good day Alex,
Maybe you are right no UMA on MEASAT. What is yr thought on GUH?
Hi Alex,
Rubber glove sector seems to move up yet again this morning lead by Top Glove. Wht's yr take on this sector? How high more can they go?
At wht price do you believe that they'll all be too expansive?
And that an impending glut due to agressive expansion by them (if any) will affect them?
Thanks for your views.
Hi Solomon,
GUH has broken above its cup-with-handle formation at RM1.10 two weeks ago. Its next resistance is at RM1.40-50 & thereafter at RM1.80-2.00.
Hi Seong Wai,
It's hard to answer your queries. You may get the feeling from reading my posts on this sector that I am very weary. I think that the stocks have run up too much. Will they continue to rise? The answer is likely to be YES because the top-line & bottom-line of many of the players are still growing. Would a drop in either of the top-line or bottom-line be a signal to exit this sector? YES, but the share price would most likely have peaked before a decline in either top-line or bottom-line appears on the financial statements. That's a fact of life that we can't escape from when it comes to investment.
Post a Comment