In late 2009, MAS again broke to the downside of the triangle. Unlike previous breakdowns, MAS was unable to recover above the lower boundary of the triangle. However, the share price managed to stay above the RM2.00 level. Last week, MAS came under fierce selling pressure- 18 months after that breakdown. This sell-off has brought the share price to the present level of RM1.35. The next support at RM1.30 & if that failed, the stock may test its all-time low at RM1.00.
Chart 1: MAS's monthly chart as at May 29, 2011 (Source: Tradesignum)
Let's do a projection of the target for the current downside move. Assuming that this move is equivalent to the range of MAS share price over the past 2 years (of about 60 sen). The breakdown level was at RM1.60. Then, the target would be RM1.00.
Chart 2: MAS's weekly chart as at May 29, 2011 (Source: Tradesignum)
Based on technical analysis (projection studies included), I think MAS could have a decent rebound when the share price comes close to the RM1.00 level.
7 comments:
This is one GLC not going to make its KPI ;) andrew
Hi Alex,
Can you comment on Maxis, I think this is the only blue chip stock still trading in very tight range. Any upside potential? expect its Q1 result to release by today, hopefully its interim dividend can can go up a bit more. Based on upcoming q1 1st interim dividend + cum final dividend, Maxis currently trade cum yield of at least 3% nett.
i think we need idris jala back to run this company.
maxwealth88
Bought mas around RM 1.40 . .but end of day, almost 100k done at RM1.38 .
Hopefully the recoverly is intake after OVERSOLD season .
Hi hng,
Maxis's EPS has been hovering around 7 sen per quarter or 28 sen per annum. At that earning, Maxis is trading at a PE of 19 times. It is hard to make a case to buy Maxis, don't you think so?
Hi MaxWealth88
I think Idris Jala is glad that he is out of MAS. He picked all the low hanging fruit and left the hard work to the next guy.
Hi Ivan
MAS has good support at RM1.30. It may recover from here.
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