Mudajya announced yesterday that it has signed a coal supply agreement for Phase 1 of its coal-fired Thermal Power plant in Chhattisgarh, India. (here) The supply of coal was one of the issues that analysts had been concerned about with regards to this power plant. This supply agreement could be the catalyst for a re-rating of Mudajya, a construction company that specializes in the building power plants. This would dovetail nicely into the expectation that Mudajya may secure one or more of the power plants being planned for by the Energy Commission for the next few years.
Chartwise, we can see that Mudajya's share price has been moving sideway over the past 15-16 months. A close examination will reveal that the trading range is slowly expanding, with immediate resistance at RM2.80 and support at RM2.25. A breakout in either direction will point the way forward for the stock.
Chart 1: Mudajya's daily chart as at Sep 10, 2013_10.50am (Source: Quickcharts)
If Mudajya can break to the upside of the trading range (at RM2.80), the stock may enter into an uptrend. Its first resistance will be the psychological RM3.00 mark. Thereafter it may encounter resistance at RM3.10, RM3.30 & RM3.70.
Chart 2: Mudajya's weekly chart as at Sep 10, 2013_10.50am (Source: Quickcharts)
If Mudajya can surpass the RM2.80 level, the stock can be a trading BUY.
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, Mudajya.
5 comments:
Thanks for your analysis. May I know why mudajaya is not rising at the moment despite the good news announced? Should I hold it or let go?
What will be the next level of keck seng price
Hi Ng Lee Hui
I can't tell you what's the next level of keck seng. The stock is in all-time high territory. I don't have the chart to show you, except for an old chart from my earlier post (see link below).
This means that the stock can go without any historical resistance to block its rise. In such situation, the stock tends to overshot before painful correction set in.
Notwithstanding the forgoing, I would recommend some profit-taking even at the current price level. If you are nimble and not risk-averse, you may stay with the stock and sell on the first sign of correction. The choice is yours. Good luck.
http://3.bp.blogspot.com/_-bujseJ4BGQ/S6hf0gXGayI/AAAAAAAAG94/Ou1k5wEfniA/s1600-h/KSeng+m20100301a.GIF
With today volume & pattern of purchase of keck seng counter, any guest of price to be ended before price correction
Hi Ng Lee Hui
I think keck seng has gone far enough that you should really consider selling into strength or even reduce.
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