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Tuesday, November 07, 2017

Gamuda: At the Long-term Uptrend Line

Gamuda, the construction heavyweight, is coming under heavy selling today. It is now testing its first uptrend line, SS at RM4.80. Depending on the severity of this sell-down, the share price may even test the next long-term uptrend line, S1-S1 at RM4.50

At this moment, there is no news in the market that could explain the heavy sell-down in Gamuda. Based strictly on technical analysis, Gamuda share price may find support at RM4.50-4.80.

For investors who have been waiting to get into Gamuda, this could be an opportunity to do so at an attractive price. However the big price drop that we have seen so far today, it is not unlikely that the selling will continue tomorrow or even for the next few days. You would have to track the stock closely before pulling the trigger. Ideally you will try to get in at RM4.50. Is that possible? Let's wait & see.


Chart: Gamuda's weekly chart as at Nov 7, 2017_3.30pm (Source: Malaysiastock.biz)

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

2 comments:

Pei Shing Ooi said...

I thought there is a rumours saying Gamuda might not able to get MRT3 project as what they did and doing in MRT1 and MRT2, this caused the heavy sell down?

Alex Lu said...

Hi Pei Shing Ooi

Yes, the news is out.

Based on the “remoteness” of MRT3, any change in the outcome or model will not affect Gamuda’s bottom-line for next 3 years. Thus the reaction to the above news is overdone. I expect a short price weakness this morning, to be followed a gradual recovery in the days.