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Thursday, August 14, 2014

DKSH: Uptrend reversal noted!

In March, I called a SELL INTO STRENGTH for DKSH (go here). That's because the share price was rising despite poorer financial results. or a stock that has rallied substantially, we need to be extra careful and in the case of DKSH, I took it would be timely to take profit.

In the past 2-3 days, the stock has made a lower 'low' (as compared to May 'low') after having chalked up a lower 'high' (as compared to April 'high'). This satisfied the definition of a downtrend, where you have a lower 'low' and a lower 'high'.

If you are still having this stock, your chance of a decent exit is for the stock to stage a rebound to the RM8.00 psychological level. You should aim to sell just under the RM8.00 mark.


Chart 1: DKSH's weekly chart as at Aug 13, 2014 (Source: Tradesignum)


Chart 2: DKSH's daily chart as at Aug 13, 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,DKSH.

6 comments:

OS said...

Hi Alex , appreciate your view and comments for symphony life (Bolton) .. Thanks

luckystock2 said...

Hi Alex,
Can you comment on the technical outlook of Ytlpower ?
Thank you !

lai said...

Hi Alex,

Is the aluminium counter play real or am in living in illusion?

Pls enlighten. Thanks

Alex Lu said...

Hi OS

Symphony life is trading near its past 5-year high of RM1.20-1.30. If it can break above RM1.30, it may continue to rise, with target at RM1.80-2.00.

Please check on the fundamental of the stock before buying.

Alex Lu said...

Hi luckystock2

Despite the persistent weakness, Ytlpower is very near its strong support at RM1.40. The warrant price chart shows strength - contrary to the weakness in the underlying share price.

This means that the share price may be poised to test the low of RM1.40. If it rebound from RM1.40, we will have a double bottom reversal. That could lead to a decent rally to RM1.70-2.00.

Alex Lu said...

Hi lai

The play on aluminium stocks should be confined to primary producers, like PMetal. Alcom, which value-adds in the supply chain, will benefit very little.