Friday, April 05, 2013

LMCemnt- uptrend likely to continue

LMCemnt has just broken above its horizontal resistance at RM10.15 at about 10:00 am this morning. See Chart 1. With this upside breakout of its all-time high (albeit on very thin volume), LMCemnt is poised to continue with its uptrend. I expect the upcoming move to be a relatively small move of about 10%. This gives a potential target of RM11.00.

Based on technical breakout and positive outlook for the building material sector, LMCemnt could be a trading BUY.


Chart 1: LMCemt's daily chart as at Apr 5, 2013_10.15am (Source: Quickcharts)

Chart 2: LMCemt's monthly chart as at Apr 4, 2013 (Source: Tradesignum)

Note:
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, LMCemnt

4 comments:

vincent chua said...

Hi Alex,

What do you think of Unisem technically? Thanks.

Alex Lu said...

Hi vincent chua

The Philadelphia Semiconductor Index (SOX) seems to be peaking. If so, the no Oomph in any rally for semicon stocks.

Unisem may put in a short rally to test its strong horizontal resistance at RM1.00.

networking said...

Hi Alex,

What do u think about LMCemnt competitor, Tasek ? Is it good for long term ?

Many thanks
Brian

Alex Lu said...

Hi networking

Tasek paid a dividend of RM1.20 in FYE31/12/2012 (an increase from RM1.00 previously). For FY2012, its revenue was flattish at RM564 mil while net profit from RM103 mil to RM92 mil.

It may have broken its long-term uptrend line at RM15.50. Its next support is the horizontal line at RM14.80. Failure to recover above the uptrend line would a warning. Thus, it is good to avoid the stock for now or, if you have it, take profit on this stock.