Friday, December 17, 2010

Unisem may have a bullish breakout

Unisem may have broken above its medium-term downtrend line at RM2.15 this morning. The indicators are swinging up to confirm this potential breakout. The volume has increased significantly. If this breakout can recruit sufficient support, it may soon test its immediate horizontal resistance at RM2.40 & thereafter its recent high st RM2.60.


Chart 1: Unisem's daily chart as at Dec 17, 2010_ 12.30pm (Source: Quickcharts)

Based on the above technical outlook, Unisem could be a good trading BUY.
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12 comments:

  1. ayuFriday, December 17, 2010 2:30:00 PM

    Hi Alex,

    What is your view on THPLANT?

    ReplyDelete
  2. LaymanFriday, December 17, 2010 3:04:00 PM

    Dear Alex,

    Seek your view on Kencana. Going high for past few days. Any TP for this counter, or is it time to realise profit.

    Thanks. Good day.

    ReplyDelete
  3. AnonymousFriday, December 17, 2010 5:45:00 PM

    Hello Alex,

    Yes.. I would also like to have your opinion on Kencana too. It has been on a bullish trend since last week.

    Cheers.

    ReplyDelete
  4. VerdictFriday, December 17, 2010 7:07:00 PM

    dali called to buy jcy @1.60, proof here >

    http://malaysiafinance.blogspot.com/2010/02/jcys-new-pricing.html

    ReplyDelete
  5. leslieroycarterSunday, December 19, 2010 11:12:00 AM

    With the announcement that MMC- Gamuda had won the contract to built a bigger KL costing RM 36 B ; do you think that both of these stocks and its related warrants will be heavily sought after in the opening market? May I know what is the support level for those stocks under fundamentals n TA available in case there is a major corrections given that both stocks had risen so much prelude to the news.

    ReplyDelete
  6. LawrenceSunday, December 19, 2010 1:09:00 PM

    Hi Alex,

    May I know what charting tools you are using,can recommend any reliable tools to me.Thanks...

    ReplyDelete
  7. duranMonday, December 20, 2010 10:15:00 AM

    Hi Alex, What your views on MBMR and its technical chart. TQ

    ReplyDelete
  8. Alex LuMonday, December 20, 2010 11:18:00 AM

    Hi Herng Yee

    THPLANT has just surpassed its November high of RM1.78. It may now test the psychological RM2.00 mark. If its can also surpass that level, ite next resistance is the horizontal line at RM2.20-2.25.

    ReplyDelete
  9. Alex LuMonday, December 20, 2010 11:42:00 AM

    Hi Layman

    I don't have a fair value on Kencana. The company has made numerous tenders & we cannot be sure how many it would secure. From the technical perspective, we can do a projection using Fibonacci Extension Levels. If we assume an extension of 0.618x; 1.0x; and 1.618x of the recent retracement level (of RM0.55 which is calculated from the high of RM1.80 in January 2010 to the low of RM1.25 in May 2010) from the current breakout level of RM1.80; then the possible targets for the current move would be RM2.13 or RM2.35 or RM2.68. Kencana made an intra-day high of RM2.46 today. So, the possible target still not attain is RM2.68. Can it do it in the current rally? We will have to wait & see.

    ReplyDelete
  10. Alex LuMonday, December 20, 2010 11:47:00 AM

    Hi ayseng

    The MRT project & MMC & Gamuda's involvement therein are well-publicized. The market could have fully factored in the contribution of that project in the bottom-line of both companies. I would use technical analysis to value them. Gamuda has to surpass its recent high at RM4.00 while MMC has to break above its medium-term downtrend line resistance at RM2.90. If that happens, the stock could move higher.

    ReplyDelete
  11. Alex LuMonday, December 20, 2010 11:53:00 AM

    Hi Lawrence

    I use free technical charting tools, such as Tradesignum & Quickcharts, which is available to remisiers attached to Kenanga. If you want something more powerful, you can buy a Metastock program & get a subscription for price data. There are free data available too but I am sure whether they are reliable or consistent.

    Good luck.

    ReplyDelete
  12. Alex LuMonday, December 20, 2010 12:25:00 PM

    Hi duran

    MBMR corrected back recently due to negative development arising from Proton's proposal to merge or tie up with its associate, Perodua. This proposed marriage at gun point is hardly the thing that would endear investors to the government's Economic Transformation Programme.

    Chartwise, MBMR rebounded off its uptrend line support at RM2.90-2.95 in Dec 3. The rebound was very strong and the stock even surpassed its 2007 high of RM3.46. It achieved an intra-day high of RM3.49 on Dec 13. Unless the RM3.50 level is convincingly taken out & the Proton's proposal is abandoned, I would be very cautious of MBMR. I nearly call a SELL ON STRENGTH in early December. For now, I would rate it as a HOLD because it is fairly attractive & well-managed.

    ReplyDelete