Chart 1: CPO's daily chart as at August 5, 2010 (Source: ifs.marketcenter.com)
IJMPlant has broken above its descending triangle at RM2.45-2.50. The breakout is however lacking in volume. If it can recruit sufficient buying support, it may rally & possibly test the horizontal line at RM2.93-95. See Chart 2 & 3 below.
Chart 2: IJMPlant's daily chart as at August 6, 2010_3.30pm (Source: Quickcharts)
Chart 3: IJMPlant's weekly chart as at August 6, 2010_3.30pm (Source: Quickcharts)
IOICorp has broken above its medium-term downtrend line at RM2.14 as well as to the upside of its triangle at RM2.15. Like IJMPlant, this breakout is also short on volume. If the buying picks up, it may test its long-term downtrend line at RM2.18-2.20. If the latter can be overcome, IOICorp may rally to test its horizontal resistance at RM6.20.
Chart 4: IOICorp's daily chart as at August 6, 2010_3.30pm (Source: Quickcharts)
Chart 5: IOICorp's weekly chart as at August 6, 2010_3.30pm (Source: Quickcharts)
Based on the above technical breakout for IJMPlant, one may consider taking some position in this stock. For IOICorp, you should watch out for the upside breakout above the long-term downtrend line at RM5.18-20 before venturing in.
24 comments:
Dear Alex,
Thanks for your reply earlier.
Success. I notice some shares buy back by the company from time to time. What indication can we get from a company buys back own shares? Is it a good sign or otherwise?
Thanks.
Dear Alex,
I am new to your blog and I must say you are doing a fine job, Please keep up the good work.
I would be grateful for your views on Nylex.
KG
Pls comment on EPIC and Kencana.
thanks Alex
Hi ThomasKG
Thanks for the nice assessment of this blog.
In April, Nylex broke above the downtrend line that stretched back to 2007. The breakout point was at RM0.72. The breakout wasn't accompanied by a rally. Instead the stock move sideway for the next 3-4 months. If one were to connect the high in August 2009, January & April 2010, that line seems to cap the stock for a good 11 months. However in the last week of July 2010, Nylex broke above that line & rallied to test the August 2009 high of RM0.945. Its current correction may find support at the line connecting the high in August 2009, January & April 2010. That support is at RM0.80. If this support can be maintained, we can expect a second rally to follow. A break below RM0.80 could send the stock to the next support at RM0.70.
The recently announced results for QE31/5/2010 was a disappointment, with net profit dropping from 46% q-o-q or 64% y-o-y to RM4.7 million.
Hi Layman,
Success is a fairly conservative company. I doubt the share buyback will lead to anything other than a support for the stock at the current level.
Hi Ahmad Rozian
I will give you the technical take:
1) EPIC looks bullish. It broke above the RM2.00 resistance and may test the resistance at RM2.20 soon. If it can pass thru that, it would face the very strong resistance at RM2.45-50.
2) Kencana is holding at the strong support of RM1.50. It broke above its short-term downtrend recently. If it can recruit enough buying interest, it may test the resistance at RM1.65 & possibly the January 2010 high of RM1.81.
Check out on its financials before venturing into these stocks.
hi alex,I am new to your blog ,regard to plantation stocks,what is your comments on hsplant? apprreciate your opinion.
Hi Alex,
Read your blog on
Weida may have a bullish breakout
This stock still bullish?
Thank you.
Hi Alex,
Please help to comment on KNM, Msports and Pohkong.
These stocks are in my portfolioo right now.
Hi Alex...
Is kfc and qsr losing steam and cashflow ? Bought some shares recently. Should i selling now?
dear alex,
please ive some comment on NCB. thanks
Hi Alex,
How do your find Axiata and Hock Seng Lee stocks chart-wise.
Hi 流金岁月~丽莲
HSplant has just squeezed above a large triangle, formed by 2 medium-term downtrend & uptrend lines. Without significant volume, the upside breakout looks unconvincing. Unless CPO rose spectacularly, I expect HSplant to continue to move sideway for the next few weeks or months.
Hi @h Tong
Weida is a quiet stock. The surge in its volume in the past few days can pose a problem. If the breakout is not genuine, the stock would not be able to withstand the upcoming selling pressure. The breakout would then falter. We will have to wait & see.
Hi NGU
My technical take are:
1. Axiata may have made a temporary top. It may move sideway for the next few weeks at between RM4.20 & RM4.40.
2. Hock Seng Lee has just surpassed the strong horizontal resistance at RM1.55. However, the stock has risen quite substantially from a low of RM0.45 in January 2009. Can it still go higher?
Hi x
For the past quarters, NCB has raked in a quarterly EPS of about 8 sen. If it can maintain this earning, its PER is fairly reasonable at 11.7 times. With a dividend of 7.5%, NCB is also a good income stock.
Chartwise, NCB seems to be moving within an expanding triangle, with a base around RM2.00-2.10 & a series of rising peaks. If a line is drawn across these peaks, we can expect resistance for NCB at RM4.00-4.20.
NCB is a good stock. If you are very patient, you may try & get it at RM3.30-3.40 on the next pullback.
Hi nightradersdk
Both KFC & QSR overshot on the upside last month. However, they have corrected quite significantly last week. I expect the correction to continue for a while longer.
KFC has proposed a bonus issue & a share split. This exercise may spur interest in the stock when the entitlement date has been determined. You may want to wait for that. QSR may benefit indirect when KFC share price has another rally.
Hi KENNY BLOG
All your stocks- KNM, Msports & Pohkong- seems to have bottomed. They could be poised for an upswing, especially Pohkong. If Pohkong can break above the medium-term downtrend line at RM0.42, it may test its next resistance at RM0.45-46 & then RM0.50-52.
Hi Alex,
Do u see Bstead going higher as palm oil go up?
Hi nightradersdk
Yes, Bstead will benefit from the rise in CPO prices. In fact, the technical outlook for BStead is bullish, as it broke above the horizontal resistance of RM4.00 last week. Its next resistance is at RM4.80-5.00.
Hi Alex,
Can u comment on PIE prospect? This stock didnt move much even with good dividen. Thks
Hi Alex
What is your tp for bstead, PIE KFC/QSR ?
thks
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