Thursday, February 24, 2011

IJM is testing its uptrend line support now.

IJM suffered a sharp fall early this morning. It tested its 8-month uptrend line support at RM5.80. See Chart 1. It may even test its 2-year uptrend line support at RM5.70 if this selldown persist. I do not have any information as to why the stock is being sold down.

Technically, IJM could be a good trading BUY at RM5.70-5.80 if the selling dried up & the stock may stage a rebound. However, in the current cautious market, one has to exercise our discretion in entering any trading position.


Chart 1: IJM's daily chart as at Feb 24, 2011_9.50am (Source: Quickcharts)



Chart 2: IJM's weekly chart as at Feb 24, 2011_9.50am (Source: Quickcharts)
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3 comments:

  1. ArsenalThursday, February 24, 2011 10:42:00 AM

    Mr. Alex, Would appreciate your comments on KKB. My analysis shows KKB to be trading at a PE of 7, Dividend Yield of 8.4% at its current price of 2.09. What do you think is an appropriate PE to be assigned to KKB? Thanks

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  2. leslieroycarterThursday, February 24, 2011 11:09:00 AM

    Hi Alex:
    With the impending protracted long- drawn civil wars in Libya , Egypt , Tunisia and many other countries fighting for civil liberties and human rights in the name of Democracy ( created by the developed countries) , peace and stability will be at stake . The Cause/Effect will be greatly reflected in the stock market worldwide. Coupled with the world disastors and calamities surrounded us , nothing can be fully realised under these circumstances . Thus just have to make fingers crossed and prayed hard.

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  3. Alex LuThursday, March 03, 2011 12:26:00 PM

    Hi Arsenal

    I agree with your analysis on KKB- the low PE & high dividend Yield. Check out my 2 posts here .

    Chartwise, it is trapped within a rising or bearish wedge, with support & resistance at RM2.00 & RM2.35 respectively. A break above RM2.35 could signal a continuation of its prior uptrend. Conversely, a break below RM2.00 could signal a reversal in the share price. Given the attractive valuation, I expect the risk is to the upside. However, do take into account the 'Taib Mahmud' factor when we look at KKB. At this moment, this factor is not a positive. As such, it has been a drag on the share price performance.

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