Tuesday, July 17, 2012

WCT may have a bullish breakout

WCT has been trying to pull away from its intermediate downtrend line, RR at RM2.50 for the past few weeks. After many failed attempts (which took the shape of an ascending triangle), WCT had finally broken above the triangle at the RM2.55 level. With this breakout, WCT could test its horizontal resistance at RM2.80 & then the psychological RM3.00 mark soon.

Chart 1: WCT's daily chart as at July 16, 2012 (Source: Tradesignum)

We can see from the monthly chart below that the RM2.80 level is a strong resistance as it is the long-term downtrend resistance. If WCT can break above this level, its next upleg could unfold. WCT could potentially test its all-time high of RM5.00.

Chart 2: WCT's monthly chart as at July 16, 2012 (Source: Tradesignum)

Based on technical consideration, WCT could be a good stock for a trading BUY. It could even be a long-term stock if it can break above the RM2.80 mark.


cheer said...

Hi alex,

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luckystock2 said...

Hi Alex ,
With KLCI hitting new high and overbought situation , don't you think it's a bit risky to trade on break out now?

Remnant 888 said...

Hi Alex

Where do I obtain info on who owns and what % shares hey have on Hap Seng Plantation???
If such info is within your easy reach, pls furnish.
Thank you very much ...

Alex Lu said...

Hi Remnant 888

Info on shareholding can be obtained from Bursa Malaysia. Download the latest annual report and the info is at the last few pages of that report.

3pmsupertrading said...

do you still think I can enter WCT now?

3pmsupertrading said...

opps sorry, the previous question of "do you still think WCT can buy now" is NOT by 3pm. I'm using a computer that was used by him and he didn't log out.

I'm sincerely asking for advise, because I've bought some based on your recommendation and am thinking whether to buy more or cut... my email is g.yeap@hotmail.com

Thank you for your help. :)