Lionind 4235
Chart 1: Lionind – 4235, from 31/07/2009 to 29/12/2009.
As shown on chart 2, price of Lionind reached its recent peak of RM 1.74 in July, and started falling after that. It formed a T1 downtrend. When price was forming a downtrend, it was also staying below the falling 14, 21, 31 EMA, which served as the dynamic resistance.
In the end of November, 2009, price of Lionind stopped falling at RM 12.4 level, and entered into a consolidation stage for about 1 month long. As indicated by A, price rebounded, and broke above the 14, 21, 31 EMA. This suggests that it is likely to test the downtrend line.
Meanwhile, as indicated by B, volume of Lionind has increased slightly, and this suggests some new inflow of capital, and also the increase of buying interests. Provided that the volume should continue to increase, there is a good chance that price to break away from the downtrend.
Technically speaking, the rebound is currently a technical rebound, but not yet a bullish trend reversal. But nevertheless, investors should monitor and get ready with a trading place. If price should break above the T1 downtrend line, with substantial volume increase, it would be a signal suggesting a possible reversal of trend. Then, the 14, 21, 31 EMA shall be serving as the dynamic support as well as the trailing stop reference. Next resistance for Lionind is at RM 1.44 level.
On the other hand, if price should break below RM 1.24 support, it would be a new low, which suggest a continuation of the downtrend. Then, it is a good idea to cut loss. Next support for Lionind is at RM 1.14 followed by RM 1.00 level.
| 4 Q Rolling PER | 0.00 times | Dividend Yield | 0.75% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 1 sen | 0.64% | -6.06% |
| 30/06/2008 | 1 sen | 0.51% | 12.43% |
| 30/06/2007 | 1 sen | 0.58% | 4.36% |
| 30/06/2006 | 0.5 sen | 0.52% | -0.29% |
| 30/06/2005 | 1 sen | 0.81% | 8.26% |
Table 1: Lionind, Yearly Dividend, Dividend Yield, and Net Profit Ratio.
TA:
Chart 2: TA – 4898, from 10/09/2009 to 29/12/2009.
As shown on chart 2, price of TA started falling after reaching its top at RM 1.50 level, (after adjusted RM 0.85), and then it formed a downtrend, with T1 being the downtrend line. Although price rebounded from RM 0.745 in November, 2009, but despite the rebound, price failed to break above the T1 downtrend line, and later, price retreated and broke below the RM0.745 level, making new low, and continued its downtrend. Recently, price found its support at RM0.67 level, entered a consolidation.
When price went into a consolidation, the Bollinger Bands also contracted, which confirmed the consolidation signal. When the Bollinger Bands should re-expands, it would be a signal suggesting an end to the consolidation, and a beginning of a new movement.
As indicated by A, the Bollinger Bands of TA expanded, with price of TA above the Bollinger Middle Band, which suggests that the immediate outlook for TA has turned positive, despite being resisted by the T1 downtrend line. Nevertheless, should the Bollinger Bands continue to expand with price remain above the Bollinger Middle Band, the positive movement is expected to carry, thus price of TA is likely to break above the T1 downtrend line.
Ideally, the best bullish signal should be accompanied by strong volume. As indicated by B, if volume should increased significantly, it would be a better confirmation of a break out from the T1 downtrend, thus a buy signal. Then, the Bollinger Middle Band shall serve as the immediate dynamic support as well as the trailing stop reference.
However, since price of TA has not broken above the T1 line yet, the bullish signal is yet to be confirmed. On the other hand, if price should break below the Bollinger Middle Band or below the RM0.745 support level, it would be a signal to cut loss, and the next support for TA is at RM 0.62 level.
| 4 Q Rolling PER | 20.70 times | Dividend Yield | 6.34% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/01/2009 | 4.5 sen | 7.32 | 6.94 |
| 31/01/2008 | 10 sen | 7.94 | 41.33 |
| 31/01/2007 | 7 sen | 7.95 | 36.94 |
| 31/01/2006 | 5 sen | 6.34 | 25.54 |
| 31/01/2005 | 4 sen | 6.98 | 41.08 |
Table 2: TA Yearly Dividend, Dividend Yield, and Net Profit Ratio.
Conclusion:
Due the the likely hood of the Chinese New Year rally, we are here to discuss some individual counter case studies, in which we could apply the theory of finding trading signals, as well as applying the trading plan and trailing stop methods. However, the KLCI is still consolidating as the Bollinger Bands is contracting, therefore, in case that the Bollinger Bands should re-expand with the KLCI below the Bollinger Middle Band, it would be a bearish biased signal.
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