Thursday, June 20, 2013

Nadayu is in a sharp rally

A few days ago, a reader inquired about Nadayu. I commented that it is "range-bound at RM0.80 & RM0.95 for about a year now. I would say it is the stock (that) is a buy at RM0.80 if you have a long investment time horizon" (here). Before you know it, Nadayu broke above the trading range at RM0.95 (which happens to be the intermeiaite downtrend line. It subsequently broke through the psychological RM1.00 mark as well as the horizontal lines at RM1.10 and RM1.20. At the pace the stock is jumping, it may revisit its recent high of RM1.38 soon.

However, I would advise caution since Nadayu has had such a strong rally. If you have this stock, you may want to take some profit. If you do not have the stock and you want to get in, let it consolidates the recent gain. A pullback to RM1.00-1.10 level would buy you some safety margin before making your entry.

Chart: Nadayu's weekly chart as at May 20, 2013_12.15am (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, Nadayu.

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