Wednesday, September 09, 2015

Market Outlook as at September 9, 2015

Our market is rebounding with increasing spread and volume. This means this rally is sustainable for possibly 1 or 2 weeks. Since it has managed to cross the psychological 1600 mark, this level will now serve as the support. The resistance ahead will be the 30-week EMA line at 1620; the recent high at 1660 and the neckline of the Head & Shoulder reversal pattern at 1680. For those who are nimble enough, the next few days may open up opportunity for moderate trading.


Chart: FBMKLCI's daily chart as at Sept. 9, 2015 (Source: ShareInvestor.com)

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3 comments:

  1. Big SeaThursday, September 10, 2015 1:04:00 PM

    Alex,

    I am holding MAGNI and SAM. I believe they are good company and nice investment. Would you mind taking a look at two of them ?

    ReplyDelete
  2. Alex LuMonday, September 14, 2015 8:45:00 AM

    Hi Big Sea

    Please see my new post on MAGNI. As for SAM, my technical take is that this stock is likely to have peaked. If you compare the chart for SAM & SAM-LA, you will see SAM-LA has been stuck near the high of RM2.50 (on extremely thin volume) while SAM failed to test its July high of RM5.70-5.80 (though traded volume is decent). This same pattern was seen in Jul-Oct 2014 when SAM-LA & SAM finally capitulated. The first sign of weakness is a drop in SAM & a failure to rebound back to its earlier high. We are seeing the same pattern today for the stock. SAM-LA is convertible to SAM at a ratio of 2.1:1 from the date of listing 27/9/2012 until its expiry on 25/9/2017.

    Check out the link for these charts:
    1) http://www.tradesignum.com/chart/sam
    2) http://www.tradesignum.com/chart/sam-la

    In term of valuation, SAM has a diluted EPS of 24.3 sen for FY Mar 2015. At the current price of RM5.28, the stock is trading at a PER of 22 times. At this PER, SAM is fully-valued.

    ReplyDelete
  3. Big SeaMonday, September 14, 2015 3:16:00 PM

    Alex,

    Thanks for your detailed analysis.

    ReplyDelete