Friday, April 05, 2013

LMCemnt- uptrend likely to continue

LMCemnt has just broken above its horizontal resistance at RM10.15 at about 10:00 am this morning. See Chart 1. With this upside breakout of its all-time high (albeit on very thin volume), LMCemnt is poised to continue with its uptrend. I expect the upcoming move to be a relatively small move of about 10%. This gives a potential target of RM11.00.

Based on technical breakout and positive outlook for the building material sector, LMCemnt could be a trading BUY.


Chart 1: LMCemt's daily chart as at Apr 5, 2013_10.15am (Source: Quickcharts)

Chart 2: LMCemt's monthly chart as at Apr 4, 2013 (Source: Tradesignum)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, LMCemnt
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4 comments:

  1. UnknownFriday, April 05, 2013 3:04:00 PM

    Hi Alex,

    What do you think of Unisem technically? Thanks.

    ReplyDelete
  2. Alex LuFriday, April 05, 2013 3:38:00 PM

    Hi vincent chua

    The Philadelphia Semiconductor Index (SOX) seems to be peaking. If so, the no Oomph in any rally for semicon stocks.

    Unisem may put in a short rally to test its strong horizontal resistance at RM1.00.

    ReplyDelete
  3. networkingThursday, May 02, 2013 10:24:00 PM

    Hi Alex,

    What do u think about LMCemnt competitor, Tasek ? Is it good for long term ?

    Many thanks
    Brian

    ReplyDelete
  4. Alex LuFriday, May 03, 2013 1:53:00 PM

    Hi networking

    Tasek paid a dividend of RM1.20 in FYE31/12/2012 (an increase from RM1.00 previously). For FY2012, its revenue was flattish at RM564 mil while net profit from RM103 mil to RM92 mil.

    It may have broken its long-term uptrend line at RM15.50. Its next support is the horizontal line at RM14.80. Failure to recover above the uptrend line would a warning. Thus, it is good to avoid the stock for now or, if you have it, take profit on this stock.

    ReplyDelete