Tuesday, July 09, 2013

JCY- the recovery may begin...

Technical Outlook

JCY is poised to enter into its next upleg. It has broken above its 40-week EMA line and its 10-week EMA line has cut above its 20-week EMA line. All three indicators are turning upward or positive. In particular, we can see that MACD is in positive territory and the ADX has turned upward (while the +DMI is trending higher while -DMI is trending lower). Good support to accumulate the stock is RM0.70.

Chart 1: JCY's weekly chart as at July 8, 2013 (Source: quickcharts)

Recent Financial Result

JCY's recent financial performance is still very poor. However, it is not getting worse and in this business, not getting any worse is not only a consolation prize; it is a tentative sign of reversal.

Table 1: JCY's last 8 quarterly results

Chart 2: JCY's last 12 quarterly results


This is not a helpful indicator to look at when deciding to buy or to sell a cyclical stock like JCY. The confirmation you look for is illusive and comes too late.


Based on technical consideration, JCY could be a good stock for a trading BUY or even a medium-term buy.

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, JCY.


Anonymous said...

hi Alex-one stock is bugging me for quite awhile ie supermax.MD stanley Thai did made a tactical error by openly voiced support for PKR pre GE13.he paid dearly for such a move but the company is doing well.I have exited kossan at 56o and will not look at it again until later.Thinking of switching to suppermax.Appreciate your comment.TQ

luckystock2 said...

Hi Alex ,
Can you comment on the other two tech stocks Unisem and MPI also?
Tx !

Alex Lu said...

Hi luckystock2 s

Unisem has just broken above its long-term downtrend line as well as the horizontal resistance at RM1.00-1.02. Next resistance is at RM1.20. Thus, it is a possible trading BUY.

MPI is not straight forward. It may have broken above its intermediate downtrend line and an irregular triangle. If it can also surpass the horizontal resistance at RM2.70-2.75, its recovery may pick up pace.