Tuesday, January 04, 2011

Sime may have a bullish breakout

Sime has just broken above its strong horizontal line at RM9.00. Its next horizontal resistance is at RM10.00 & then at RM10.50. Based on this breakout, Sime could be a good trading BUY.


Chart: Sime's weekly chart as at Jan 4, 2011_9.30am (Source: Quickcharts)

For those with a more aggressive appetite, you may try Sime-CH or Sime-CJ or Sime-JA. However, the tenor for Sime-CH & Sime-CJ is rather short as they are due to expire in February. The better instrument for an aggressive play on Sime's bullish breakout would be Sime-JA, which is a Callable Bull Certificate (or 'CBLC'). As mentined previously, CBLC is very similar to a Call Warrant (or 'CW') except it has the added feature of having a Mandatory Call Event ('MCE') which automatically forces the issuer to recall the CBLC when it hit a Minimum Trading Price ('MTP') (for more, go here). At a premium of 1.2%, Sime-JA is deemed fairly attractive.


Table: Sime's CWs & CBLC valuation & terms
at

4 comments:

  1. JimTuesday, January 04, 2011 10:00:00 AM

    Hi Alex,

    Can you kindly comment on YEELEE?

    Bullish breakout?

    Thanks.

    ReplyDelete
  2. leslieroycarterTuesday, January 04, 2011 10:08:00 AM

    Hi Alex:
    very complicated money instrument like CBLC in Sime - JA . The recall under MCE by the issuer when the price hits MTP etc added more to the already confusion state existed. I think many still opted for other common play though it entailed a bigger risks. This is only part of my opinion which i would like to share. Again thanks for the extra knowledge parted.

    ReplyDelete
  3. leslieroycarterTuesday, January 04, 2011 10:16:00 AM

    Hi Alex:
    Kseng has hit 7.00 today . I would like to know how far this stock may go for its TP under the prevailing fundamentals ,chartwise and the various indicators b4 the ex -date for the announced bonus issue . Is it worth to hold it a short,medium or long term when RSI and MACD scanners quoted that this share has been "overbought" exceeding 73 %. May u elaborate what is "overbought" and "oversold" in the trading of stocks as mentioned. Thanks

    ReplyDelete
  4. Alex LuTuesday, January 04, 2011 10:56:00 AM

    Hi Jimmy Yeoh


    I have noticed that YEELEE has broken above its medium-term downtrend. In addition, a short-term uptrend has also started. A good entry is at RM0.95-1.00.

    ReplyDelete