Proton- poised for an upswing?

Proton has a sharp rise today. As at 4.30pm, Proton is up 54 sen to RM3.24. If you use the 40-week SMA line as a proxy to a downtrend line, Proton has just broken above that downtrend line. The indicators are all supportive of a recovery in the share price.


Chart 1: Proton's weekly chart as at Nov 15, 2011_4.00pm (Source: Quickcharts)

If you look at the monthly chart, Proton has a peculiar price movement. It would swing up & then it would be sold down. This had happened twice. It could be due for another upswing. If so, the upside breakout today could be the beginning of that upswing. The target for this upswing is RM5.00.


Chart 2: Proton's monthly chart as at Nov 1, 2011 (source: Tradesignum)

Proton is a marginal automaker. For 1Q2012 ended 30/6/2011, it reported a net profit of RM4.5 million on sales of RM2.233 billion. Its earning is mediocre but it has a NTA of RM9.86 per share. How much of that NTA can be translated to cash is a big question mark.

This post serves to highlight a possible trading buy for Proton. Why is Proton rallying now? I have no idea.