In July, I posted about 2 unloved stocks that had dropped sufficiently to consider buying. The stocks were DRBHcom and MMCCorp. For more, go here.
Chart 1: MMCCorp's weekly chart as at Sep 3, 2014 (Source: Tradesignum)
Over the past few days, MMCCorp rebounded from RM2.30 to RM2.70. The other stock, DRBHcom is now testing its downtrend line at RM2.23-2.25. If it can break above this downtrend line, it too will begin to recover. Look closely at the bullish divergence in the rising MACD & RSI indicators vis-a-vis the declining share price. This is a sign of bottoming in the stock.
Chart 2: DRBHCOM's weekly chart as at Sep 3, 2014 (Source: Tradesignum)
Conclusion
So, if you missed out on MMCCorp, it is not too late to take a small position in DRBHCOM.
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, DRBHCOM & MMCCORP.
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