Chart: SOX, Unisem, Gtronic & MPI's daily chart as at April 26, 2010 (Source: Stockcharts & Tradesignum).
Tuesday, April 27, 2010
Semiconductor stocks- time for profit-taking
The Philadelphia Semiconductor Index (SOX) has been in an uptrend since November last year. I have drawn an uptrend line (SS) which has supported the SOX in previous bouts of correction. I have also drawn a parallel line (PP) which acted as a resistance to its periodic upswings. While SOX moved within this channel, we can see that the index also moved in short-term cycles lasting 3-4 months. I have denoted cyclical highs as H1, H2, H3, H4 and possibly H5. I have also denoted the cyclical lows as L1, L2, L3 and L4. We may be making a cyclical high soon, which I denoted as H5. After the previous cyclical, H4, the SOX corrected back to the uptrend line (and, cyclical low, L4). This also coincided with a sharp correction for Unisem, Gtronic & MPI back to their respective 50-day SMA line. If the SOX made a cyclical high & entered into a correction, we can expect a similar correction among our semiconductor stocks, especially Unisem & Gtronic. It may be a good idea to sell into strength for these 3 stocks.
Chart: SOX, Unisem, Gtronic & MPI's daily chart as at April 26, 2010 (Source: Stockcharts & Tradesignum).
Chart: SOX, Unisem, Gtronic & MPI's daily chart as at April 26, 2010 (Source: Stockcharts & Tradesignum).
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9 comments:
How abt glove?
hi alex,
what is your view on the next 3months? Any recommended stocks?
thanks
maxwealth88
Hi Cheer,
The rubber glove stocks are all above their uptrend lines. Three of them- Supermax, Adventa & Latexx- are resting on the uptredn line support this moment. The uptrend line support of the main rubber glove makers are:
Topglove.....RM12.50
Kossan*......RM7.70
Harta........RM7.35
Supermax*....RM6.90
Latexx.......RM3.80
Adventa......EM3.40
(* accelerated uptrend line support)
Hi MaxWealth88,
I am trying not to recommend any more stocks for this moment. I feel the market is quite toppish presently. The risk we take now outweigh the reward we may receive. Under such circumstances, it is best to stay light & easy
Dear Alex
Do you have investment idea on Crestbld and Protasco. These two construction counter are trading below PE<8x; dividend yield >5%
dear alex,
can comment on GUH?
thanks
I have to agree with you, Alex. Another 6 weeks to world cup. Market is beginning to adjust its mood to world cup mood. Better cash out the profit and buy a 50" LED tv. HA~
Hi hng,
My take on the two stocks are
1) Crestbld is range-bound between RM0.70-0.85. There is no sign where the move will be.
2) Protasco is in a gradual uptrend with support at RM1.00. A possible triangle can be seen, with resistance at RM1.07. If it can cross above the RM1.07 level, its uptrend may continue.
Hi 仑襁,
GUH is in an uptrend that started in March last year. The support of that uptrend line at RM1.05.
The stock is presently trapped within a triangle with support at RM1.18 and resistance at RM1.26. Its uptrend will continue if it achieved an upside breakout above RM1.26. On the other hand, a downside breakout below RM1.18 could send the stock to the above-mentioned uptrend line (where the support is at RM1.05).
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