Tuesday, January 10, 2012

Picorp may have a bullish breakout

Picorp has brpken above two resistance levels today. They are the horizontal resistance at RM0.245 & the intermediate downtrend line at RM0.25. Its next resistance level are at RM0.28 & then at RM0.36.

Based on this, Picorp could be a good trading BUY.

Chart: Picorp's daily chart as at Jan 10, 2012_2.45pm (Source: Quickcharts)


cheer said...

Hi Alex,
what happen to time...

Alex Lu said...

Hi cheer

Is that a philosophical question or are you asking about Time, the stock?

If it is the later, Time is now pressing against the resistance of RM0.35. An upside breakout at that level could lead to a good rally.

Ojas said...

good morning Alex,

i enjoy reading your blog .U r so kind that to share your knowledge and inform with other. Thank you

Ojas said...

Good morning Alex,

How about EAH ? do u think is good to keep after their ex bonus today ?

Alex Lu said...

Hi Ojas

Thank you for your nice compliment.

EAH looks quite weak. Its short-term uptrend line support is at RM0.21, which was momentarily violated yesterday. EAH closed at the support yesterday (which is the ex-date for the 1-for-2 bonus). To me, that is a sign of very weak stock. You should also note that prior to the ex-date of the bonus issue, there was no sign of any excitement or rally. Based on this and the fact that the stock is still in a long-term downtrend line (with resistance at RM0.22-0.23), I think you should reduce your position in this stock or avoid it.

chanhoo said...

Hi Alex,

Do you might to share with me regarding Picorp latest P/E ratio?

Alex Lu said...

Hi chanhoo

Picorp's annualized EPS is about 2 sen. At 23 sen, its P/E is 11.5 times.

chanhoo said...

Thanks Alex. Happy CNY.