JTInter broke its long-term uptrend line

On August 17, I have posted on JTInter (here). I concluded as follows:

Based on good financial performance & reasonable valuation, JTInter could be a good stock for long-term investment, especially if you are looking for a steady income. However, the recent technical breakdown could not be ignored. It could be a warning of more correction ahead. For those with a position in this stock, you may want to reduce your position on any rebound above RM7.00. The stock is a good buy at prices below RM6.00.

Alas, the stock failed to come close to the RM7.00 mark since the post. It did manage to climb back about the long-term uptrend line for a short period. It has however broken below its long-term uptrend line at RM6.80 in early September. Based on this technical breakdown, I would rate JTInter a trading SELL.

Since the stock rose from a low of RM3.50 to a high of almost RM7.50, a good level for re-entry into the stock would be after a retracement of 38-50% (or a price decline of RM1.50-2.00) to RM5.50-6.00.


Chart: JTInter's weekly chart as at Sept 15, 2011_plotted on log scale (Source: Tradesignum)