Chart 1: 3A's weekly chart as at Jan 7, 2011_9.40am (Source: Quickcharts)
Another stock which had broken above its medium-term downtrend line earlier was Cocolnd. This stock broke above the downtrend line at RM2.55 on January 5. Currently trading at RM2.79, Cocolnd's immediate horizontal resistance is RM2.95 & then at RM3.10.
Chart 2: Cocolnd's weekly chart as at Jan 7, 2011_9.40am (Source: Quickcharts)
Based on upside breakout of their respective medium-term downtrend line, 3A & Cocolnd are good trading BUYs.
5 comments:
Hi Alex,
Can you kindly comment on Plenitu?
Thanks.
Hi Alex...
ermmm... to be frank im a little worry about the market, coz i think that the next crisis will be hosted by us n latin america n some of those market tat had successfully attracted those hot money... anyway, do u have any information about how many "hot money" had join the sotck market?
n i had noticed that the volume of bursa is dam high, is tat the effect of the hot money?? or those ah gong n ah mar had come into the market? n where can i get more information bout tat?
Hi Loryau
I know your concern which is valid. If you have been following my blog for the past 1 year, you will have a feeling that I'm either a reluctant bull or a cautious bear. The current market rally started in March 2009 and it is one of the longest rally that we have ever experienced. When it finally peaks, the bear phase can be savage. When would it happen? We don't know.
Good luck.
wow... this is the longest rally? ermm... tats mean this is even longer than those had happen in 1993 n 1997?
actually i think that we can try to avoid ourself when there are more n more retail investor had join the market, since the aim of the big fish were to sell their shares to those small fish... n grab their money...
Hi Jimmy Yeoh
Plenitu had a bonus issue of 1-for-1 in Oct 2010. After a brief correction, the stock is again trading near its recent high at RM2.40. At the present price of RM2.30, Plenitu is trading at a PE of 7.7 times. This is deemed very attractive. Chartwise, I see the limited upside for the stock as it's very near to the line that connects its high in 2004, 2007 & 2010. On the other hand, if the stock dropped below RM2.00, its uptrend could be over.
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