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Friday, January 03, 2014

SKPetro- testing its intermediate uptrend line

SKPetro has dropped sharply over the past 2 days prompting concern that something are not right with the stock. However when you look at the chart, you will see that the stock has risen substantially over the past 4 months from a low of RM3.20 to a recent high of RM4.90. It is quite normal for a stock to give back some of its recent gain. As at this posting, SKPetro was trading at RM4.52-4.53. This is fairly near to the uptrend line, SS as well as the horizontal line at RM4.50. If the share price can stay above this level, a rebound may come quite soon. However, if the share price were to break below the RM4.50 mark, then you can expect a long consolidation.

Based on technical consideration, SKPetro could be coming to a good entry level, provided it does not break below the RM4.50 mark.


Chart : SKPetro's weekly chart as at Jan 2, 2014  (Source: tradesignum)

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, SKPetro.

1 comment:

lai said...

thanks for the reasoning, Alex.

I was just wondering, in what kind of situation would you use trendlines, horizontal support/res, or pivot points?

thank you.