Our Ringgit ('RM') looks set to strengthen further against the USD. From Chart 1 below, we can see that the 50-day SMA line has just knocked against the 100-day SMA line and looks set to go lower. This would happen if the RM breaks below the horizontal support of 3.15-16. This same set-up was witnessed in September 2009 & March 2010 when the 50-day SMA line knocked against the 100-day SMA line & went down. At each occasion, the RM strengthened against the USD by about 20 sen. If the same thing were to recur, the USD-RM exchange rate may drop to 3.00.
Chart 1: USD-RM's daily chart as at August 2, 2010 (Source: Yahoo Finance)You would notice that FBM-KLCI had rallied each time the RM strengthened against the USD (in September 2009 & March 2010). If the same were to recur, we can expect FBM-KLCI to rally, possibly to test the upside of the expanding triangle at 1400-1420. See Chart 2.
Chart 2: FBM-KLCI & USD-RM's daily chart as at August 2, 2010(Source: Yahoo Finance & Tradesignum)The above technical set-up is awaiting a downside breakout in USD-RM below the horizontal support of 3.15-16.
8 comments:
hi bro. what is proton target price after break rm4.60 ?
Hi wong
Proton is testing its downtrend line at RM4.60. If it can break above that (with GOOD VOLUME), it may challenge its recent high of RM4.99-5.00.
Hi Alex
May I have your views in Gamuda and Gamuda-wd ? Do you think mkt is over bought now ???
Thanks !
Hi Alex,
I was told to transfer my 2,000 M3nergy shares to Adamus @1.85per share. I asked her what will happen if I dont, she said I will still have to sell it to them at the end of the day & I may not get my money as fast as if I signed it before the dateline of 3/8/10.I then signed the transfer form. Now I believed I have been given the wrong info.Pl advise me.
Hi khoo,
Regarding the Adamus's offer to buy out the shares of M3nergy, the shareholders have 2 options- to keep the share or to dispose off the share. If you keep the share, you will be a shareholder of a private company which comes with many limitations. Most people would avoid such a situation. If you choose to sell, you can sell in the market or you may accept Adamus's offer. The acceptance of any offer to buy is by way of transferring the share to a designated account (in this case, Adamus Avenue Sdn Bhd) and to send this transfer request form & the acceptance form to the offeror. Your stockbroker can handle the logistics for you, if time permits.
If you think that the offer is unfair in term of pricing, then you can hold out for more. I wouldn't knows whether the offeror will revise the offer price or not.
Based on the above, I don't think you were wrongly advised.
Hi csk
Gamuda may have overrun in the recent rally. People got carried away by the MRT proposal with a mouth-watering, eye-popping RM26 billion price tag. I have serious doubt that the proposal will be approved any time soon.
Technically, Gamuda is pressing against a very strong horizontal resistance of RM3.40. If it can cross this hurdle, it may rally further.
Gamuda-WD is presently trading at a premium of 11%, which is reasonable. However, with the mother share checkmated by the RM3.40 horizontal line, some warrant holders are getting nervous & started to bail out.
Hi Alex,
Can you comment on Adventa? I hold it for long periods.... :(
Hi NiCol Lim
For QE30/4/2010, Adventa's net profit dropped 31% q-o-q while turnover increased by 5% q-o-q. Topglove has also recorded a similar decline (of 10% q-o-q) for QE31/5/2010. It will be interesting to see how Harta, Kossan, Supermx & Latexx would fare when they release their results for QE30/6/2010.
Adventa is trapped within a triangle, with support at RM2.90-3.00. If it break below that, the stock's uptrend would be over & its outlook would turn bearish. On the other hand, if it can break to the upside of the triangle at RM3.30, it would continue with its prior uptrend. The results of Harta, Kossan, Supermx & Latexx could point the way forward for Adventa.
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