Wednesday, December 29, 2010

YTLPower may have a bulish breakout

On November 9, YTLPower's share price suddenly shot up to an intraday high of RM2.74. Scanning through the Bursa website, one cannot figure out why the share price jumped so much & so sudden on that day. Two subsequent announcements which could be considered as price-sensitive are the results announcement on November 25 (nothing spectacular) and the setting up of a wholly-owned subsidiary, YTL Jordan Energy Limited which would be involved in investment holdings (of what business we do not know). In the market, there were rumors as always of privatization exercise which not many serious investors would care to believe. What could have cause the sharp spike?

Interestingly, the share price had subsequently consolidated in a descending triangle. On December 23, YTLPower broke to the upside of that triangle at RM2.40. See Chart 1 & 2 below. This bullish breakout was not accompanied by heavier volume. Nevertheless, it did not fall back below the breakout level over the past few days. With the indicators turning positive, this breakout could be the continuation of the prior gradual uptrend for the stock. Whatever that has propelled YTLPower to spike up on November 9 could come into play again. From Chart 3, we can see that YTLPower is in a long-term uptrend line with support at RM1.90. The parallel line may cap the next rally and that resistance posed by this line is at RM3.20-3.30.


Chart 1: YTLPower's daily chart as at Dec 29, 2010_9.20am (Source: Quickcharts)



Chart 2: YTLPower's 60-min chart as at Dec 29, 2010_9.20am (Source: Quickcharts)



Chart 3: YTLPower's monthly chart as at Dec 1, 2010 (Source: Tradesignum)

Based strictly on technical analysis, YTLPower could be a good trading BUY.
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22 comments:

  1. leslieroycarterWednesday, December 29, 2010 1:10:00 PM

    Hi Alex:

    All indicators point to a bullist breakout to usher a better year ahead. Wish u a Happy New Year..

    ReplyDelete
  2. IvanWednesday, December 29, 2010 2:27:00 PM

    Bro, thanks for sharing on YTLPower. If YTLPower will breakup, I think YTLPower-cb will run more faster. As on 12.30pm, it YTLPower-cb jump 3cen which send the ROI per day >10%.

    Bro, listen to u that day; I go into GENM and it look a triangle also. But I dono whether the triangle is good sign or bad sign. Can U please give some view? Thanks

    ReplyDelete
  3. IvanWednesday, December 29, 2010 2:27:00 PM

    I bought into Genm-CL at 10cen, hold it even it pullback to 9cen. Hopefully GENM can breakup 3.45 and 3.60 :)

    ReplyDelete
  4. Alex LuWednesday, December 29, 2010 4:10:00 PM

    Hi Ivan

    GENM is actually in a downtrend line, with resistance at RM3.42. It needs to break above that level before its next upleg can begin.

    ReplyDelete
  5. IvanWednesday, December 29, 2010 4:12:00 PM

    ops..seem i have get a poor share. .hmm . .hopefully tomorrow can breakup. .today adi kiss 3.40. .

    perhaps end of day, 3.40 all makan and can push high to 3.45

    ReplyDelete
  6. cheerWednesday, December 29, 2010 5:04:00 PM

    Hi Alex,

    Hopefully GENM can break through 3.42 tomorrow. Any study to HSPlant ? Is this a good stock to enter now ?

    ReplyDelete
  7. TehGKWednesday, December 29, 2010 5:09:00 PM

    Dear Sir,

    Can you kindly comment on KFIMA?

    TQ

    ReplyDelete
  8. AnonymousWednesday, December 29, 2010 5:44:00 PM

    Hi Alex, Can you comment on Deleum. These Oil and Gas stock have been trade sideways for a while, will it have chance to breakout soon?

    ReplyDelete
  9. Remnant 888Wednesday, December 29, 2010 10:20:00 PM

    If time permits, pls look at Kwantas financials and TA. I'm puzzled why it hasn't shot up.. Thanks so much..

    ReplyDelete
  10. JimThursday, December 30, 2010 12:32:00 AM

    Hi Alex,

    Can you kindly comment on ANALABS?

    Thanks.

    ReplyDelete
  11. AnonymousThursday, December 30, 2010 7:59:00 AM

    hi bro alex. can u please comment on Mudajaya and Ramunia. Thx alots

    ReplyDelete
  12. UnknownThursday, December 30, 2010 9:11:00 AM

    Hi Alex,

    Wish you a Happy New Year.

    Thanks for the last time you did help me to comment on VS. Now VS hit 2.17. Can you please give some view, what is the next TP. Thanks again

    ReplyDelete
  13. IvanThursday, December 30, 2010 9:16:00 AM

    Good day Bro,

    Yippie~~ tomorrow cuti due Msia boleh. We win the football :)

    So, gov will push the CI to a new high today. Yippie~~ hold on my genm-cl :D

    thanks bro and happy new year to u :D

    ReplyDelete
  14. tanThursday, December 30, 2010 9:36:00 AM

    hi alex,
    do you hear any new about ijmland?.the price gap down & went lower but i can't find any announcement on the merger excercise that was due yesterday

    ReplyDelete
  15. Alex LuMonday, January 03, 2011 3:40:00 PM

    Hi chweelin_teo

    VS's immediate horizontal resistance is at RM2.15 & then at RM2.40.

    VS reported a good set of results for QE31/10/2010. Its net profit increased by 40% q-o-q or 220% y-o-y to RM13.0 million while its turnover was unchanged from QE31/7/2010 but up 40% when compared to QE31/10/2009. Based on the last 4 quarters' EPS of 19 sen, VS is trading at a PE of 11 times. I think the stock is fairly valued now.

    ReplyDelete
  16. Alex LuMonday, January 03, 2011 4:01:00 PM

    Hi wong

    Mudajaya's immediate resistance is at RM4.60 & then at RM4.80. Ramunia's immediate resistance is at RM0.50 and thereafter at RM0.65 & RM0.75.

    I think Ramunia is a stock to be avoided. Its management has proven to be incapable of managing the business in the past & I doubt they have changed for the better since then.

    Mudajaya is however a different kettle of fish. It is probably a well-run company which was unfortunately tarnished by the recent negative reports. If it can break above the psychological RM5.00 level, the perception could have changed. Until then, I am inclined to think that Mudajaya is a stock that you should "sell into strength" when it rises to the RM4.60-4.80 level.

    ReplyDelete
  17. Alex LuMonday, January 03, 2011 4:11:00 PM

    Hi Jimmy Yeoh

    ANALABS is an attractive stock, trading at a PE of 6 times. It is consolidating within a symmetrical triangle with support at RM1.55 & resistance at RM1.65. It could be a trading BUY if it breaks above the RM1.65 level.

    ReplyDelete
  18. Alex LuMonday, January 03, 2011 4:27:00 PM

    Hi Remnant 613

    Kwantas's financial performance in 2009 has been negatively affected by losses incurred by its new oleochemical plant operation in China. This has led to the selldown of the stock by EPF. In November last year, EPF ceased to be a substantial share holder of the company but it was still holding about 15 million shares in late October. Until this position is fully cleared off, the share price of Kwantas will face strong headwind.

    In the past 4 quarters, Kwantas has been a profitable concern. It achieved a full-year EPS of 14 sen. Based on its price of RM1.97, Kwantas is trading at a PE of 14 times. This is deemed to be the fair value of the stock.

    Chartwise, Kwantas is consolidating in a descending triangle with support at RM1.80 & resistance at RM2.00.

    ReplyDelete
  19. Alex LuMonday, January 03, 2011 4:35:00 PM

    Hi hng


    Deleum is a stock that moves at a glacial pace. From Aug 2007 to Mar 2009, it was in a downtrend. Since then, it "seems to be in an uptrend". I qualified my statement because a stock that floats up can hardly be said to be trending mode (uptrending mode). A trending mode implies a positive action. Deleum is devoid of any positive action. It merely exists.

    ReplyDelete
  20. Alex LuMonday, January 03, 2011 4:41:00 PM

    Hi TehGK

    There have been a few reports on KFIMA, which are generally positive. I am also positive on it. I will not say anything about its financial or its valuation, which you can easily obtain. However, I would say that the stock may test its strong horizontal resistance at RM2.00 in the current bullish CPO market outlook. If it can break above the RM2.00 level, it may even test the RM2.50 level.

    ReplyDelete
  21. Alex LuMonday, January 03, 2011 4:51:00 PM

    Hi cheer

    HSPlant has just broken above the strong horizontal resistance of RM3.30 & it may revisit its Jan 2008 high of RM3.80. It is obviously riding on the bullish sentiment for plantation stock, given the strong price movement for CPO. However, we must bear in mind that the stock is now trading at a trailing PE of 18. Any correction in CPO price would quickly lead to a correction for HSPlant. I am inclined to sell into strength at this juncture for this stock.

    ReplyDelete
  22. IvanMonday, January 03, 2011 5:05:00 PM

    Thanks bro.

    My 1st day trading in new year start with a impressive angpow :D

    Thanks to Genm-CL
    Enter 10cen, sold at 12.5cen

    I guess today huge gain +12cen in GenM, will have some good sign in candle , might possible JV with vietnam casino news... but take profit are more important.

    Gross 25% , mean my trading objective :D cheer bro :D

    ReplyDelete