Monday, December 24, 2012

PPB broke its long-term uptrend line

PPB broke its long-term uptrend line in September. It tried to recover above the uptrend line in October but failed. This was followed by the breakdown of its horizontal support at RM12.00. Next horizontal support levels are at RM10.00 & RM8.00. Its 10-month SMA line has just cut below the 50-month EMA line- the last time this happened was in early 1998. This plethora of negative technical reading means the outlook for the stock is bearish.

Based on this, it is not advisable to accumulate this stock despite the recent sharp decline. Those who choose to do otherwise, especially those who attempt to trade PPB at strong support levels, should do so with careful discretion and always with a tight protective stop.

Chart: PPB's monthly chart as at Dec 21, 2012 (Source: Tradesignum)

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, PPB.

No comments: