Tuesday, March 27, 2012

Genting poised to challenge its downtrend line

Many investors know about the amazing performance of Las Vegas Sand- a stock that declined from a high of USD140 in October 2008 to a low of USD2 in March 2009 but it recovered back to USD60 recently. For a 5-year chart of the movement of LVS, go here. I have presented below the 3-year chart of LVS where you will see that the stock traded in a mild downtrend from November 2010 to January 2012. The stock broke above the downtrend line at USD48 in January & hit the recent high of USD60.

Chart 1: LVS's daily chart as at March 26, 2012 (Source: Stockcharts)

If you look at the chart of Genting, you will see that this stock has also traded in a mild downtrend line since January 2011. Yesterday, Genting nearly tested its downtrend line at RM11.20. If Genting can break above this downtrend line, it may continue its prior uptrend in the same manner as LVS. As such, we should keep a close tab on Genting.

Chart 2: Genting's daily chart as at March 27, 2012_10.00am (Source: Quickcharts)

1 comment:

Anonymous said...

Hi Alex

Since your last comment on P.I.E, it have manage to break its immediate resistance at RM4.60, staying now at RM4.84. As you mention, P.I.E next resistance level is at RM 5.00. The question remain whether P.I.E could surpass RM 5.00 !?

I've come across P.I.E managing director latest interview with one of the business article 《資匯》, Accordingly, P.I.E is on expansion mode, and is confident to achieve higher revenue with target to surpass RM 400m this year as it have gradually increasing its capacity production on its newly acquire two factories.

Based on above statement, P.I.E which have been long time perceive as conservative and prudent company have restart its growth path.