Wednesday, July 17, 2013

Unisem- the recovery play may begin soon?

Unisem has broken above its downtrend line in late May. Since then, it has been moving in a sideway manner. Now it has inched above the horizontal line of RM1.02. The indicators are supportive of an upside move. The Philadelphia Semiconductor Index (SOX) has also moved up very convincingly.

Based on the improving technical outlook and SOX's technical strength, Unisem is poised for recovery. As such, Unisem could be a good stock for a trading BUY.

Chart 1: Unisem's weekly chart as at July 17, 2013_3.30pm (Source: Quickcharts)

Chart 2: SOX's daily chart as at July 16, 2013  (Source: Stockcharts)

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, Unisem.


ck said...

Dear Alex

How about other tech stocks eg :MPI , Notion , Mesiniaga etc ?

Alex Lu said...

Hi ck

My take on:

MPI- It may have broken above its long-term downtrend line at RM2.60. If it can break above the RM2.80 horizontal line, its prospect for starting its upleg will brighten up considerably. For now, it is pretty much in a hold-&-wait mode.

Notion- This stock is still in a long-term downtrend line with resistance at RM0.95. Its technical indicators have improved over the past 3 weeks and it may break above the horizontal line at RM0.78-0.80. If that happens, we may see a rally to test the LT downtrend line.

Mesiniaga- This stock is in a long-term uptrend line with support at RM2.00. Its strong horizontal resistance is at RM2.50.