Chart 1: Tanjong's weekly chart as at Apr 7, 2010_4.45pm (Source: Quickcharts)
From the weekly chart, we can see Tanjong failed in its attempt to surpass the RM19.00 horizontal line. It may get support from the horizontal line at RM18.00, failing which it may get support from the medium-term uptrend line at RM17.40-50.
Chart 2: Tanjong's weekly chart as at Apr 7, 2010 (Source: Quickcharts)
The sudden sharp drop in Tanjong makes me hesitant to call a trading BUY if the stock were to test the support at RM18.00 (or lower support level). The selloff happened in the afternoon (after 3.00pm). To be safe, let's wait & see whether the stock can recruit sufficient support & rebound off the highlighted support level before making our entry.
The drop in Tanjong could be a sign that some funds managers are beginning to take profit on their share portfolio after a long & rewarding rally. This could however be an isolated case, but if more blue chip stocks experienced similar selloff, we may have to re-examine our position.
Note: I have amended the title "Tanjong had a sharp selloff" to "Tanjong had a sharp drop". The word 'selloff' is a bit too strong for this occasion.
6 comments:
when do think the market will correct after the recent rise
Can give some comments on Genting? It has been up and down to the same level for past 2 months. How far can it go? Thanks.
hi bro. please comment on JOHAN. can buy at current price?
Hi Kian,
See my latest post on market outlook.
Hi Zee, Fion,
Genting has formed a downtrend (with the sighting of a lower high (on Jan 7) & a lower low (on Mar 1). The immediate support is at the reaction low (on Mar 1) of RM6.20 & the horizontal line of RM6.00.
As the stock has entered into a downtrend, Genting is a stock to be avoided for now.
Hi wong,
Johan has broken to the upside of the descending triangle at RM0.31. The next resistance is at RM0.33.
Based on the upside/bullish breakout of the triangle, Johan could be a trading BUY.
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