Friday, April 10, 2015

TROP: Poised to a decent rally?

Trop may have broken above its intermediate downtrend (using the 100-day SMA as proxy). The last time it had a similar breakout in Mar 2014, the stock had a decent rally from RM1.35 to RM1.65.


Chart 1: TROP's daily chart as at Apr 10, 2015_9.15am (Source: ShareInvestor.com)

Trop's monthly chart shows that the stock is now testing a strong downtrend line, R2-R2 at RM1.10. It has a strong support from its gradual long-term uptrend line, SS at RM1.00.


Chart 2: TROP's monthly chart as at Apr 10, 2015_9.15am (Source: ShareInvestor.com)

Based only on technical consideration, Trop could be a potential trading BUY. For long-term investment, we need to look into its fundamental. Nonetheless, I believe the RM1.00 should be a strong support and possibly a good entry level to this stock.

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, TROP.
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2 comments:

  1. steveFriday, April 10, 2015 5:47:00 PM

    According to trop's NTA and RNAV, it's really cheap at current price. However, since it has high debt and property sentiment not so good, so it's hard to it to sell assets to reduce debt. And its high-end focus also not preferred by investors today who favor affordable housing.

    I'd love to hear your comments on Trop's fundamental. Thank you and have a nice day.

    ReplyDelete
  2. Alex LuTuesday, April 14, 2015 9:08:00 AM

    Hi steve

    Thanks for sharing. When time permits, I will look into Trop again.

    ReplyDelete