Chart 1: Kuchai's daily chart as at Oct 28, 2010_11.45am (Source: Tradesignum)
Those who have been in the stock market long enough would recall that Kuchai had a massive bonus issue in 2006 (here). For every one share owned, Kuchai's shareholder received 45 bonus shares. As the stock approached the entitlement date, Kuchai share price launched into a near vertical parabolic rise. It touched an adjusted high of RM4.704 (or, unadjusted high of RM216.50). Such sharp rallies are like reverse bungee jumps- it is bound to drop back to the ground. Is it about to do something similar. Let's wait & see.
Meanwhile for those holding this stock, you should take note that the immediate strong horizontal resistance is at RM1.30-1.35. Success in taking out this resistance will get you a ticket to ride on a reverse bungee. Enjoy your ride!
Chart 2: Kuchai's weekly chart as at Oct 28, 2010_11.45am (Source: Tradesignum)
Note: Malaysia Finance has a write-up on this stock (here).
8 comments:
hi bro. please comment on OSK from technical and fundamental. i heard OSK will going to announce a major corporate exercise soon. thx ...
Hi Wong,
OSK has broken above its downtrend line at RM1.35 last week. This week, it has surpassed its very strong resistance at RM1.45. This would now be a strong support level. Its next resistance is at RM1.55-1.60.
Based on these double breakout, OSK looks very interesting.
Hi Alex,
Any comment you can give on perisai besides the technical study.
Hi Alex,
Wht's your take on the much anticipated QE by the Fed nxt week?
If that does happen, how will it effect our share market & commodities (more specific gold) prices?
Tq.
Please comment on JCY & Airasia.. whether both of counter worth to hold..
Hi Alex,
What is your take on YTLLAND?
Hi solomon
YTLLAND had a good rally after breaking above the strong horizontal resistance at RM1.15 and RM1.25 in the last 2 weeks of October. It is now testing the horizontal resistance at RM1.55.
YTLLand has risen more than 50% since October 1 and it could be due for some correction. When this happens, the drop can be quite sharp. I won't be surprised if it can pullback to its 10 or 20-day SMA lines at RM1.33 or RM1.22 respectively.
If you have the stock, you may want to sell some (on strength). If you do not have any stock & are looking to get in, you may want to wait for a decent pullback (say, to RM1.20-1.30).
Hi ikah2000
JCY is in a downtrend line, with resistance at RM1.03-1.05. However, the indicators are showing bullish divergence which may indicate that the stock is trying to form a bottom. Until an upside breakout, this is to be avoided. The news for the tech sector is still positive and this should help JCY in this rough time.
Airasia is in an uptrend line. If you have the stock, hold on to it. If you don't & you want to get in, you can try at the 20 or 30--day SMA line at RM2.34-2.43.
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