Monday, January 11, 2010

Unisem & MPI riding on the rise of SOX

A few days ago, I have posted on the bullish breakout for Unisem (go here). It has reached the target price of RM2.00-2.05 this morning. On closer examination, the strong rally in Unisem came about because it has broken above its long-term downtrend line at RM1.65-70 (see Chart 1 below). In addition, Unisem is benefiting from the continued rally in the Philadelphia Semiconductor Index (SOX)- see Chart 2 below.


Chart 1: Unisem's monthly chart as at Jan 8, 2010 (Source: Quickcharts)


Chart 2: SOX's daily chart as at Jan 8, 2010 (Source: Stockcharts)

The same bullish pattern has also developed in MPI. From Chart 3 below, we can MPI has broken above its short-term downtrend line at RM5.70 on Jan 6. The monthly chart is not as clear-cut as that of Unisem. MPI appears to have surpassed its immediate long-term downtrend line (R1-R1) while the next long-term downtrend line (RR) is still intact. This uncertainty should not cloud the positive short-term outlook for MPI. The stock is likely to rise until the next long-term downtrend line (RR). See Chart 4 below.


Chart 3: MPI's daily chart as at Jan 11, 2010_10.00am (Source: Quickcharts)


Chart 4: MPI's monthly chart as at Jan 8, 2010 (Source: Tradesignum)

Based on the above, you may like to take a look at MPI. If you have closed your long position on Unisem, you may like to re-look at the stock on pullback.
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10 comments:

  1. jamesMonday, January 11, 2010 2:31:00 PM

    Hi Alex,

    Looking at Sunway-WC's charts, it has pretty much zig zagged within the channel range of 38-47sen. And it is retesting the 47-47.5sen resistance for the 3rd time. What are the price targets if it does surpass it this time around?

    Thanks,
    James

    ReplyDelete
  2. cheerMonday, January 11, 2010 2:37:00 PM

    Any comment on Maxtral? Heard they success list in Taiwan. Pls comment

    ReplyDelete
  3. AlexPMonday, January 11, 2010 3:02:00 PM

    Hi Alex,

    Could you take a look at TM, and how does the TM-CI warrant look to you?

    Thanks!

    ReplyDelete
  4. Alex LuMonday, January 11, 2010 5:31:00 PM

    Hi James,

    You may have spotted a stock on the verge of a bullish breakout. If Sunway & Sunway-WC were to move up 2-4 sen over the next few days (with good volume), you may have a bullish breakout.

    Good luck.

    ReplyDelete
  5. Alex LuMonday, January 11, 2010 5:38:00 PM

    Hi Cheer,

    I don't know what the listing in Taiwan will do to Maxtral. A few other companies are listed in Taiwan & their share price did not really move higher.

    Nevertheless, Maxtral looks interesting from the technical angle. It appears to have a breakout above its medium-term downtrend at RM0.30. It has also surpassed a strong horizontal resistance at RM0.32. Its next resistance levels are RM0.45, RM0.55 & RM0.65.

    Please check out the financial statements before making your entry.

    ReplyDelete
  6. Alex LuMonday, January 11, 2010 5:47:00 PM

    Hi Alex,

    TM has been inching up slowly since Dec 24. Using intra-day 60-min chart, we can see an uptrend line formed with support at RM3.08-10.

    TM-CI is a call warrant with exercise ratio of 6-to-1 & exercise price of RM2.69. It will expire on Sept 17 this year. Based on this terms, its premium is quite reasonable at 2.9%.

    However, TM is not an exciting stock, operating in a very competitive environment. Its main fixed line business is slowly losing out to mobile telephony. Its broadband business is under siege from the same source as well as the new WIMAX operators. I doubt this stock will go far in the near-term.

    ReplyDelete
  7. solomonMonday, January 11, 2010 9:16:00 PM

    Good day Alex,

    I guess investors are busy with the gloves counters.

    What do you think of Wong Engineering?

    ReplyDelete
  8. Lilian LeeMonday, January 11, 2010 10:23:00 PM

    Hi Alex,

    How far unisem can go? Any target price for this stock?

    ReplyDelete
  9. Alex LuTuesday, January 12, 2010 9:40:00 AM

    Hi Solomon,

    Wong is a loss-making company, whose share price is still in a long-term downtrend. While I don't see any sign of a play developing for Wong, we may never know. One only has to look at Takaso's rally yesterday to see that the CNY rally is slowly broadening out.

    ReplyDelete
  10. Alex LuTuesday, January 12, 2010 9:44:00 AM

    Hi Lilian Lee,

    The first resistance is at RM2.40. That should be the immediate target for Unisem.

    ReplyDelete