As the KLCI is making historical new high, total market volume has also increased significantly as investors are rushing in with confidence. Therefore, many counters are resuming their uptrend, and some continues to make new high. However, the increased of investors confidence does not mean that the risk is reduced, therefore, a valid and careful trading plan is still vital.
AIRASIA – 5099: Testing new high again.
Chart 1: AIRASIA – 5099 as at 05/01/2011.
As shown on chart 1, price of Airasia has been testing the RM2.73~RM2.75 resistance many times, and therefore, the upside room has been capped under this resistance. However, since its price was supported by the 14, 21, 31 EMA, it has not form any downtrend yet.
As indicated by A, price of Airasia tested the RM2.75 resistance again, and breaking above this level by margin. However, it is still too soon to call for a valid break out. Technically, after the break out, price should be pullback to below RM2.75, and if so, it would be a false break out.
Nevertheless, if the breakout is successful, the 14, 21, 31 EMA shall resumes its role as the dynamic support, and for those who are already in position, it is a good idea to hold as long as the price is still above the 14, 21, 31 EMA.
| 4 Q Rolling PER | 8.85 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2010 | 0 sen | 0.00% | 17.27% |
| 31/12/2009 | 0 sen | 0.00% | -17.87% |
| 31/12/2008 | 0 sen | 0.00% | 38.90% |
| 31/12/2007 | 0 sen | 0.00% | 31.07% |
| 31/12/2006 | 0 sen | 0.00% | 10.25% |
Table 1: AIRASIA – 5099, yearly dividend, dividend yield, and net profit ratio.
MALTON – 6181: Consolidation intact.
Chart 2: MALTON – 6181 as at 5/01/2011.
As shown on chart 2, price of Malton remains in a consolidation stage since November, 2010. While price is consolidating, the fluctuation also decreases inside the Symmetrical Triangle pattern.
The L1 line outlines the formation of a lower-high, which means a weakening direction of price. However, the L2 line is outlining a formation of higher-lows, which means a positive movement of price. Therefore, with the L1 and L2 line still intact, the Symmetrical Triangle is actually showing a conflict between bullish buyers and bearish sellers.
Technically, it is not a good idea to trade when price is consolidating inside a Symmetrical Triangle, until a valid break out. If price should break above the L1 line, it means that price is breaking away from its consolidation, and if volume could increase significantly during this break out, there is a chance of Malton to resume is uptrend. But still, it is always a good idea to apply the training stop reference with the 14, 21, 31 EMA. On the other hand, if price should break below the L2 line, it means a bearish breakout of the consolidation.
| 4 Q Rolling PER | 12.35 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2010 | 0 sen | 0.00% | 6.30% |
| 30/06/2009 | 0 sen | 0.00% | 1.54% |
| 30/06/2008 | 0 sen | 0.00% | -1.18% |
| 30/06/2007 | 0 sen | 0.00% | 0.62% |
| 30/06/2006 | 0 sen | 0.00% | 1.59% |
Table 2: MALTON – 6181, yearly dividend, dividend yield, and net profit ratio.
UEMLAND – 5148: Testing RM 2.60.
Chart 3: UEMLAND – 5148 as at 05/01/2011.
As shown on chart 3, price of UEMLand has been consolidating after hitting a resistance at RM2.60 in December, 2010. However, the 14, 21, 31 EMA is still supporting it, and the 14, 21, 31 EMA together with the RM2.60 level is actually forming an identical consolidating pattern to an Ascending Triangle.
Technically, the Ascending Triangle implies a bullish bias movement, with the Resistance remains unchanged, but the support is gradually moving higher. In other words, new buyers are buying this share with higher price, while old selling are not selling lower.As indicated by A, after rebounding from the 14, 21, 31 EMA dynamic support on the 29th of December, 2010, price is now testing the RM2.60 resistance again. If price could successfully break above the RM2.60 resistance, it means that the uptrend will continue, and as for those who are already in position, it is a good idea to hold as long as the price is still above the rising 14, 21, 31 EMA dynamic support.
| 4 Q Rolling PER | 43.59 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0.00% | 28.40% |
| 31/12/2008 | 0 sen | 0.00% | 14.50% |
Table 3: UEMLAND – 5148, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
The overall market condition is still bullish, with many counters resuming their uptrend, and some are breaking new highs. However, investors should not forget about the risk, and therefore, a sound trading plan is still needed.
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