Wednesday, March 27, 2013

Construction stocks may continue to rally

Construction index broke above its strong horizontal resistance at 245 today. At the time of writing, Construction index is at 246. Last week, this index broke above its downtrend line at 240. With these double breakouts, Construction sector is likely to begin its next upleg.

Based on this, we can consider investing or trading in construction stocks, such as IJM, Gamuda & WCT.

Chart: Construction's weekly chart as at Mar 27, 2013_4.00pm (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, IJM, Gamuda & WCT.


Anonymous said...

How about UOADEV?

Alex Lu said...

Hi Kwang Hui Chan

UOADEV seems to be rising in an upward channel. The upper boundary of that channel is at RM2.15. This will act as a resistance but if the stock can surpass that resistance, the share price can rise further (even exponentially).