Wednesday, November 07, 2012

BAT below the RM60 psychological mark

BAT dropped by RM1.64 to RM59.80 yesterday. The stock has lost RM5.00 or 7.7% over the past 8 days. It has now broken below the psychological RM60 mark and the 20-week EMA line at RM60.38. Its next support would be the uptrend line at RM57 (coinciding with the 40-week EMA line at RM57.17). It is interesting to note that today is the last cum date for the entitlement of a dividend of 65 sen. Would the dividend be enticing enough to get investors to buy the stock today? Has BAT hit a double-top reversal, with more downside to come? Only time will tell.

Chart 1: BAT's weekly chart as at Nov 6, 2012(Source: Quickcharts)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BAT.


cheer said...

Hi Alex

How you read this semicon news compare to$SOX&p=D&b=5&g=0&id=p39891143251

Pls share your thought...

Anonymous said...

hi alex-you hit bull eye with skpetrol and allianze.shall i exit now? thank you!

Alex Lu said...

Hi charles leong

Taking profit is always a good policy in this 'trading' market.

Alex Lu said...

Hi Cheer,

I can't get to the first link. If the question is about SOX index, my take is that that index is still in a long uptrend. It is not strong but the underlying technical support is present. So, I feel that semicon stocks like Unisem & MPI could be good for slow accumulation or at least a HOLD.