Thursday, August 15, 2013
SKPetro- a cautious recovery in the work?
When Yinson announced a tie-up with Kencana Capital, a private company belonging to Mokhzani Mahathir, to acquire control of a Norwegian company with exposure in the FPSO & FSO sectors, two things happens- Yinson rose and SKPetro swooned. From the charts below, we can see how badly SKPetro has declined while Yinson was much better off.
Chart 1: Yinson's daily chart as at August 15, 2013_4.15pm (Source: Quickcharts)
Chart 2: SKPetro's daily chart as at August 15, 2013_4.15pm (Source: Quickcharts)
SKPetro had broken below the strong horizontal support of RM3.80 in the past few days. It made an intra day low of RM3.69 yesterday. This afternoon, the stock has recovered back above the RM3.80. If it can go back above the RM3.80 level, SKPetro may continue to recover. However, its prices have been moving lower within a downward channel with the upper boundary at RM4.00. A breakout above the RM4.00 mark could signal the continuation of its prior uptrend.
As for Yinson, if the stock can break above the RM5.16-5.20 level, it may continue with its uptrend too. However, I am more cautious with regards to Yinson due to its sharp run-up in the past 2 months. I prefer SKPetro to Yinson.
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, SKPetro & Yinson.