Wednesday, June 08, 2011

PChem may have broken its uptrend line at RM7.10.

PChem dropped marginally below the medium-term uptrend line support at RM7.10 yesterday. Today, it pulled away & traded at a low of RM6.97. If PChem cannot recover back above this uptrend line quickly, its uptrend would be over. In such a scenario, I would cancel the earlier trading BUY call and instead recommend a SELL for this stock. (Note: Even if PChem failed to recover back above its uptrend line, PChem- being a GLC- is likely to drift lower instead of dropping quickly. That's one of the benefit of being a GLC stock. You can always count on the support from local funds.)


Chart: PChem's daily chart as at June 8, 2011_3.30pm (Source: Quickcharts)

6 comments:

Ivan said...

Hi,

What is your view on local market after the budget 2012?

Frankly speaking, I don't see any friendly budget which was been say by PM. Thx

Alex Lu said...

Hi Ivan,

I agree. Then again, I didn't expect much.

Ivan said...

Hi Alex,

What are your expectation for pchem counter? Where is the support and resistence?

Ivan said...

Will pchem move toward RM6 ?

Alex Lu said...

Hi Ivan,

The resistance is at RM5.80, RM6.00 & RM6.20. Will it go up to test these levels? I don't know.

Ivan said...

Thanks Alex for your reply.

Regional mkt up today. Thx to DJIA +330 yday. Shall we name as techinical rebound?