Wednesday, November 16, 2011

Armada is sailing away

One of the big movers this morning is Bumi Armada Bhd ('Armada'), a company controlled by Ananda Krishnan. It is the largest owner & operator of offshore support vessels in Malaysia. For more, go here.

Armada broke above its downtrend line at RM3.45 on October 6. An short-term uptrend line has also formed. If we draw a line connecting the recent high, we have an irregular upward channel. The current upswing may send this stock to test the upper channel at RM4.20-4.25. However, the stock may weak back to re-test its uptrend line at RM3.70-3.75- which would be a good entry point.

I am more comfortable to nibble into this stock on pullback towards the uptrend line.


Chart 1: Armada's daily chart as at Nov 16, 2011_9.40am (Source: Quickcharts)



Chart 2: Armada's 60-min chart as at Nov 16, 2011_9.40am (Source: Quickcharts)
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2 comments:

  1. luckystock2Wednesday, November 16, 2011 3:26:00 PM

    Hi Alex ,
    What do you think about TDM which seem like have a breakout today and Hsplant which is trading sideway ? I like both stock with their cheap valuation.
    Tx!

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  2. Alex LuWednesday, November 16, 2011 4:17:00 PM

    Hi luckystock2

    You are right about TDM achieving a breakout at RM3.20. Hsplant resistance is at RM2.70- no breakout yet.

    ReplyDelete