Steel stocks poised for recovery

Annjoo broke above the horizontal line at RM1.30 yesterday. It continued to rally today, to close at RM1.42. Its next strong resistance is at the horizontal line at RM1.60.


Chart 1: Annjoo's weekly chart as at Aug 4, 2014 (Source: Tradesignum)

Is this the beginning of recovery for the steel sector? We can see from the next 3 charts - LionInd, Kinstel & Perwaja -  that these steel stocks are all poised to test their long-term downtrend line. In fact, LionInd & Kinstel have broken above its downtrend line.

Based on technical consideration, Annjoo could be trading BUY. LionInd and Kinstel may follow suit, after a brief bottoming phase.


Chart 2: LionInd's weekly chart as at Aug 4, 2014 (Source: Tradesignum)


Chart 3: Kinstel's weekly chart as at Aug 4, 2014 (Source: Tradesignum)


Chart 4; Perwaja's weekly chart as at Aug 4, 2014 (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, Annjoo, LionInd, Kinstel & Perwaja.