Wednesday, November 15, 2006

Maxis-CA shows the way forward?

Yesterday, Maxis-CA has a very sharp run-up. It gained 18.5 sen to close at RM1.06. In the process, Maxis-CA has broken above two important resistances i.e. the medium-term downtrend line which commenced in w/e Jan 14, 2005 at the RM1.03 level as well as the psychological resistance of RM1.00. With this breakout, Maxis-CA may test the next resistances at RM1.15 & RM1.35. See Chart 1 below.


Chart1: Maxis-CA's weekly as at Nov 14

The mother share has gained 20sen to close at RM9.05, yesterday. It is important that the share should surpass the RM9.05 or 9.10 resistance, which has been in place since November 2005 (see Chart 2 below). Unless this happens, the rise in the price of Maxis-CA is not likely to sustain.

Chart1: Maxis' weekly as at Nov 14

By 11.00 a.m. this morning, the share has broken above the RM9.05/10 resistance to touch RM9.20 while Maxis-CA gained 19 sen to touch RM1.25. For those who are interested to gain entry to Maxis, the level to look out for is RM9.05/10. An exposure via Maxis-CA may be a bit tricky after this current sharp run-up. You may want to see whether it can pull back to resistance-turned-support levels such as RM1.15 or a much safer level RM1.00.

Maxis-CA has an exercise ratio of 1:1; an exercise price of RM8.11 & expiring on November 18, 2007. At the price of RM1.25 at 11.00 a.m. this morning (with the mother price of RM9.20), Maxis-CA is trading at a premium of 1.7% only.



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