Supermx-7106: Forming Descending Triangle.
Chart 1:Supermx-7106 (08/01/2010～05/05/2010)
As shown on Chart 1, price of Supermx formed a Descending Triangle, with the L1 line being a dynamic resistance while the L1 (RM 6.60) is the support. A Descending Triangle suggests that price is consolidating but with some downside biased, because it has already formed a Lower-high, and therefore, it would confirm a formation of a downtrend when price should break below the L2 line.
As individual by A, price of Supermx is testing the RM6.60 level, and if it should break below the RM6.60 level, the 14, 21, 31 EMA shall continue serving as the dynamic resistance, thus the technical outlook for Supermx is expected to be weak.
On the other hand, if price should remains supported by the RM6.60 level, it would prolong the consolidation and break away from the L1 line, but however, it would be a sideways movement, not a bullish movement yet, unless volume should pick up significantly.
| 4 Q Rolling PER | 11.08 times | Dividend Yield | 1.65% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 11.00 sen | 2.01% | 15.92% |
| 31/12/2008 | 3.25 sen | 4.06% | 5.58% |
| 31/12/2007 | 1.90 sen | 0.63% | 13.85% |
| 31/12/2006 | 6.50 sen | 1.56% | 10.49% |
| 31/12/2005 | 6.50 sen | 1.46% | 12.74% |
Table 1: Supermx-7106, yearly dividend, dividend yield, and net profit ratio.
Topglov -7113: About to form and downtrend
Chart 2: Topglov -7113 (08/01/2010～05/05/2010)
As shown on chart 2, price of Top Glove formed a Descending Triangle, with the L1 line being a dynamic resistance while the L2 (RM12.38) is serving as a support. The formation of this Descending Triangle suggests that price is consolidating but with weakness, for it has formed a Lower-high, which is the early sign of a weakening trend.
As indicated by A, if price should break below the L2 line, then the L1 line as well as the 14, 21, 31 EMA would continue serving as the dynamic resistance, and a downtrend would form, with the bearish technical outlook, until price should break above the 14, 21, 31 EMA successfully.
In other words, price of Top Glove has to break above the L1 line in order to break away from the negative trend, and if it should resumes its uptrend, the upside break out of the L1 line has to be confirmed with a significant increased of volume.
| 4 Q Rolling PER | 15.73 times | Dividend Yield | 1.77% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/8/2009 | 22.00 sen | 3.17% | 11.04% |
| 31/8/2008 | 11.00 sen | 2.71% | 8.01% |
| 31/8/2007 | 9.22 sen | 1.31% | 8.83% |
| 31/8/2006 | 9.00 sen | 1.04% | 7.90% |
| 31/8/2005 | 8.00 sen | 1.60% | 9.06% |
Table 2: Topglov -7113, yearly dividend, dividend yield, and net profit ratio.
Latexx-7064: Strong earnings, but failed to lift share price.
Chart 3: Latexx-7064 (08/01/2010～05/05/2010)
Despite announcing a strong earnings, 125% increased on earning per share, on the 3rd of May, price of Latexx react negatively, and started falling. This kind of reaction implies that investors are not confident with the market or this individual stock any more, thus a sign of caution. That is why, technical analysis is a study of price with investors' memory as well as psychology.
Nevertheless, currently, price of Latexx is moving sideways thus a best time to monitor the sideways consolidation by using the Bollinger Bands. As indicated by A, the Bollinger Bands contracted for about two weeks, suggest that price was consolidating while preparing for a new movement, and finally the Bollinger Bands re-expanded, but unfortunately, with price of Latexx staying below the Bollinger Middle Band, thus giving a weakening signal.
If price should break below RM3.60, it would be a signal to cut loss, for Latexx would be making a 4 months new low, and then, the 14, 21, 31 EMA shall serve as a dynamic resistance, with technical outlook being weak.
Technically, when price should break below RM3.60~RM3.70, it is a signal to cut loss. It is because when price should break below RM3.60~RM3.70, it means that for this months, all investors who had bought their share above RM3.60~RM3.70 and are still holding, would be turning their profit into losses, and when this happens, there will be more fear in the market as these investors no long want to make a profit, but breaking even becomes their priority, thus selling pressure is expected to be higher.
| 4 Q Rolling PER | 11.48 times | Dividend Yield | 0.53% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 2 sen | 0.53% | 15.86% |
| 31/12/2009 | 0 sen | 0% | 6.97% |
| 31/12/2009 | 0 sen | 0% | 3.40% |
| 31/12/2009 | 0 sen | 0% | 2.79% |
| 31/12/2009 | 0 sen | 0% | 3.35% |
Chart 3: Latexx-7064, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
When the broad market is turning weaker, the strongest market leaders would also be affected. Therefore, it is very important for a smart investors to trade with the overall market direction.
Copyright © 2009 Straits Index (M) Sdn BhdImportant Disclaimer:These content provided by Straits Index (M) Sdn Bhd is solely for education and information purposes only, and do not suggest any investment advices. All information displayed are believed to be accurate and reliable. Interpretation of the data or analysis is at the reader's own risk. Straits Index (M) Sdn Bhd reserves the rights but obligations to update, admen, or even terminate the materials. 重要声明:以上的内容由海峡指数(马)私人有限公司提供,纯粹是教育性质, 并不是任何的投资忠告。所有资料显示认为是准确和可靠的。对数据或分析的解释和用途是在于用户自己的风险。海峡指数(马)有限公司持有保留及义务更新,甚 至终止材料的权利。
