Monday, June 21, 2010

Integra has a bullish breakout

It's good to be back! The first stock to look at is Integra.

Integra had a bullish breakout of its triangle formation at RM1.18-20 last Friday (see Chart 1). It also broke above its long-term downtrend line at RM1.25 (see Chart 2). This double bullish breakout could be due to a fight between the two Rasip brothers (Harun & Amin) for control. The fight is not a straightforward affair as Harun & Amin jointly owned Halim Rasip Holdings Sdn Bhd which in turn owned 33% of Integra. This is likely to be similar to the tussle in Tan Chong Consolidated (for control of the listed vehicle, Tan Chong) or Kian Joo Holdings Sdn Bhd (for control of the listed vehicle, Kian Joo). It can be a long drawn-out affair with no clear winner. I think the best approach is to confine our analysis based on technical consideration. With that in mind, the first target to take profit is RM1.50-1.60, if one already owned the share. If you want to get into the stock, you can try at RM1.18-1.25. Good luck.


Chart 1: Integra's daily chart as at June 18, 2010 (Source: Tradesignum)


Chart 2: Integra's weekly chart as at June 18, 2010 (Source: Tradesignum)
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9 comments:

  1. LaymanMonday, June 21, 2010 10:17:00 AM

    Dear Alex,

    welcome back from holiday.
    Hope you enjoy your time.

    Market seems to be on bullish mode. Wonder if good time to buy in now to catch the train?? Or it is just another sparks in the air.?

    ReplyDelete
  2. UnknownMonday, June 21, 2010 10:21:00 AM

    HI Alex ,

    Can I have the comment for Latexx share ? what is the entry point ?

    Can I have the comment for scomi share ? what is the entry point ?

    ReplyDelete
  3. LaymanMonday, June 21, 2010 11:23:00 AM

    Dear Alex,

    Is Gpacket at good entry price now? Hope you can comment on this.

    What is your view on GUH.

    Thanks alot.

    ReplyDelete
  4. SheonMonday, June 21, 2010 11:24:00 AM

    Dear Alex

    Can I have the comment for AEM share ?


    Swee

    ReplyDelete
  5. Alex LuMonday, June 21, 2010 4:02:00 PM

    Hi Layman,

    I had a good break. I took some time off to attend a class reunion. It brought back some great memory.

    The market is certainly looking good. I have been too cautious. I should have raised the green flag once the USD started to weaken. This would signal a change in investors' risk appetite. With improved risk appetite, equity & commodity prices should recover.

    ReplyDelete
  6. Alex LuMonday, June 21, 2010 4:10:00 PM

    Hi PHKoay,

    Both Latex & Scomi have a bullish breakout. Latex broke above its downtrend line at RM3.60 last Friday, while Scomi- which broke above its downtrend at RM0.40 on June 8- has just broken above the strong horizontal resistance at RM0.41-415 today.

    ReplyDelete
  7. Alex LuMonday, June 21, 2010 4:57:00 PM

    Hi Swee,

    AEM is in a sideway move, with support at RM0.52-53 & resistance at RM0.58-60. AEM is a marginal company, consistently losing money over the past few years. I vaguely remember its proposal to acquire an associate stake in a holiday cruise liner operating in the Caribbean. A strange business venture, indeed!

    ReplyDelete
  8. UnknownWednesday, June 23, 2010 8:23:00 PM

    Hi Alex,

    Intergra, drop so much today! Is this a pull back...I look at the chart and it does not look too good.
    I enter at 1.25 today and should I hold or cut loss.

    ReplyDelete
  9. Alex LuThursday, June 24, 2010 11:28:00 AM

    Hi William,

    If Integra goes below RM1.18, the bullish breakout would be negated. Then Integra could continue to drift back to RM1.00.

    So, it is critical that the stock stay above the RM1.18 level.

    ReplyDelete