Tuesday, September 13, 2011

SPSetia is coming up against a strong support

In July, I have pointed out that SPSetia had broken its intermediate uptrend line at RM3.90 (here). The stock has since broken below the strong horizontal support at RM3.75 & RM3.50. It is poised to touch the long-term uptrend line at RM3.20. The RM3.20 level is not expected to yield easily when tested as it is also the strong horizontal support. This could set the stage for a technical rebound. The brave & agile traders may try to trade this technical set-up. If you choose to do so, you are advise to set your protective stops.


Chart: SPSetia's weekly chart as at Sept 12, 2011 (Source: Tradesignum)
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5 comments:

  1. IvanTuesday, September 13, 2011 5:46:00 PM

    Bro,

    It seem many blue chips also fall below 200 MA; and highly chance going to a bearish soon.

    What do you think where will be our support at if the bearish is coming? Will CI re-kiss 800 levels? Thanks for sharing.

    ReplyDelete
  2. ahfookTuesday, September 13, 2011 6:57:00 PM

    Any comment on Mahsing?

    ReplyDelete
  3. AnonymousTuesday, September 13, 2011 10:01:00 PM

    Based on my DCF estimation, SPSETIA fair value is around 3.2.

    ReplyDelete
  4. Alex LuWednesday, September 14, 2011 2:23:00 PM

    Hi ahfook


    Mahsing's immediate support is at the horizontal line RM1.90. Thereafter, it will be the long-term uptrend line support at RM1.70.

    ReplyDelete
  5. Alex LuWednesday, September 14, 2011 2:27:00 PM

    Hi Ivan

    Hard to say. Anything can happen when market goes into the extreme. At this moment, I am inclined to think that we would see very attractive prices for stock when the FBMKLCI hit the 1250-1350 level.

    ReplyDelete