Wednesday, August 13, 2008

Maybulk broke its strong horizontal support of RM3.50

Maybulk, which closed at RM3.48 yesterday, has convincingly broken below its strong horizontal support of RM3.50 when it ended the morning session at RM3.38 (losing 10 sen on a volume of about 977k). Presently, Maybulk share price is near its long-term uptrend line support at RM3.30-36. In the absence of a quick recovery, Maybulk would be drifting lower. While there will be other supports to come (notably the horizontal support of RM3.12-16), the downtrend would have commenced for Maybulk (see Chart 1 below).


Chart 1: Maybulk's weekly chart as at August 12th (source: Quickcharts)

The weakness in Maybulk share price reflects the drop in the freight rates, which can be clearly seen in the chart of Baltic Dry Index below.


Chart 2: Baltic Dry Index's daily chart as at August 12th (source: InvestmentTools.com)
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4 comments:

  1. Remnant 888Wednesday, August 13, 2008 7:24:00 PM

    First, thank you for all your time and effort in putting up all those articles. I read all of it and learn a great deal. Here's one reader who appreciates you blog.

    I trade a heavy loss on Ann Joo today holding on past 3 days hoping price would rebound on good fundamental of eps and per but mr. market decide otherwise.
    Lesson learned: never go against the market trend.

    Hubline seems to hold better than Maybulk and Swee Joo. Swee Joo also has been down from 1.27 to 1.00 and very illiquid. I had difficulty selling whatever I held.
    Just my two sens worth.

    ReplyDelete
  2. Remnant 888Wednesday, August 13, 2008 7:27:00 PM

    There's a website; www.stockq.org. that used to exhibit world market indices of everything.. For some reason, it's no longer available or may be going reconstruction.
    just sharing..

    ReplyDelete
  3. Alex LuThursday, August 14, 2008 3:15:00 PM

    Hi remnant613,

    Your point on Hubline & Sweejoo is valid. They could also be safer to invest in, since they had corrected more than Maybulk. On the other hand, Maybulk may appeal to some investors because it's controlled by Robert Kuok.

    The English version of the StockQ website is not operational, but the Chinese version is working. If you understand Chinese, you can try this link: http://www.stockq.org/

    ReplyDelete
  4. UnknownWednesday, January 28, 2009 10:42:00 AM

    Here is the english version of the website for the world indices.
    Pretty neat, all in one page.

    http://74.125.95.102/translate_c?hl=en&sl=zh-TW&u=http://www.stockq.org/&prev=/search%3Fq%3Dwww.stockq.org%26hl%3Den%26sa%3DG&usg=ALkJrhgYGRm3MYf_asLKbNEBmCuNpkMHlQ

    ReplyDelete