Chart 1: KLCI chart from 20/10/2009 to 17/02/2010.
Based on the above chart, the KLCI rebounded 23.85 points or 1.9% from 1224 points, but could the KLCI resume its uptrend? Technically, due to the lack of volume, which suggests the insufficient inflow of fresh capital, the KLCI is lack of one of the important bullish conditions. Meanwhile, the KLCI is still testing the 14, 21, 31 EMA, which is still serving as the dynamic resistance. To conclude, the KLCI had only a technical rebound last week.
Latexx:
Chart 2: Latexx, chart from 20/10/2009 to 17/02/2010.
As shown on chart 2, price of Latexx fell last month, as lead by the broad market. But it managed to consolidate at the 14, 21, 31 EMA, which is serving as the dynamic support. Therefore, it means that the uptrend has not be violated. As the KLCI rebounded last week, price of Latexx regained its position above the 14, 21, 31 EAM.
Technically, if price should remain above the 14,21, 31 EMA, there is a good chance for it to resume its uptrend, and the best confirmation would an increased of volume. For those who are holding, and feeling uncomfortable, a partial profit taking is a good alternative.
Nevertheless, next resistance for Latexx is at RM 4.23 while the support is at RM 3.42 other than the 14, 21, 31 EMA.
| 4 Q Rolling PER | 14.60 times | Dividend Yield | 0.51% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 2 sen | 0.53% | 15.86% |
| 31/12/2008 | 0 sen | 0.00% | 6.97% |
| 31/12/2007 | 0 sen | 0.00% | 3.40% |
| 31/12/2006 | 0 sen | 0.00% | 2.79% |
| 31/12/2005 | 0 sen | 0.00% | 3.35% |
Table 1: Latexx, yearly dividend, dividend yield, and Net profit ratio.
Genting：
Chart 3: Genting, chart from 20/10/2009 to 17/02/2010.
Price of Genting formed a downtrend as pulled by the KLCI, and the 14, 21, 31 EMA is serving as the dynamic resistance. As indicated by A, despite the KLCI rebounded strongly, price of Genting remains below the 14, 21, 31 EMA. Volume also did not increased when price of Genting rebound, this suggests that the buying interests is still weak. In other words, the downtrend for Genting remains intact. Nonetheless, support for Genting is at RM 6.60 level, while the 14, 21, 31 EMA is still the dynamic resistance.
If price should continue to stay below the falling 14, 21, 31 EMA, and break below the RM6.60 level, it means that the consolidation has ended, and price of Genting is resuming its downtrend, and the next support is at RM 6.00. In other words, if price should break RM 6.60, it is a signal to cut loss.
| 4 Q Rolling PER | 36.46 times | Dividend Yield | 1.05% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2008 | 7 sen | 1.89% | 6.27% |
| 31/12/2007 | 37 sen | 0.98% | 12.15% |
| 31/12/2006 | 32 sen | 0.97% | 21.66% |
| 31/12/2005 | 29 sen | 1.36% | 22.86% |
| 31/12/2004 | 24 sen | 1.26% | 19.97% |
Table 2: Genting, yearly dividend, dividend yield, and net profit ratio.
Sime：
Chart 4: Sime, chart from 20/10/2009 to 17/02/2010.
As shown on Chart 4, price of Sime has been falling for about a month, while the 14, 21, 31 EMA is serving as the dynamic resistance. As indicated by A, price of Sime technically rebounded, in line with the KLCI rebound, and the immediate support is at RM 8.28 level. However, price of Sime is precisely resisted by the 14, 21, 31 EMA, this suggests that Sime is still in a downtrend, and the rebound was merely technical.
If price should break above the 14, 21, 31 EMA, there is a chance that Sime would break away from the downtrend, but this has to be confirmed with substantial increased of volume. On the other hand, if price should remain resisted by the falling 14, 21, 31 EMA, the downtrend shall continue.
In other words, when price begins to fall after being resisted by the 14, 21, 31 EMA, it is a signal to take profit, because if price should break below RM8.28, it would be making a new low.
| 4 Q Rolling PER | 24.30 times | Dividend Yield | 2.39% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 20.30 sen | 2.92% | 7.35% |
| 30/06/2008 | 49 sen | 5.30% | 10.32% |
| 30/06/2007 | 30.20 sen | 3.15% | 7.26% |
| 30/06/2006 | 30 sen | 5.45% | 5.56% |
| 30/06/2005 | 26 sen | 4.48% | 4.30% |
Table 3: Sime, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
For the investors who are having losses, technical rebound is a chance to reduce losses. As for short term speculator, a technical rebound is a chance for some short term trading, provided with skills, of course. However, a short term trader should always be clear of his original intention, which is to speculate, and once price move against him, he should cut loss without any doubts.
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