Faber: Uptrend Consolidation:
Chart 1: Faber, from 16/11/2009 to 17/03/2010.
As shown on chart 1, price of Faber was trending up, but temporary has found a resistance at RM2.08 level, thus price went into a consolidation. As indicated by A, the Bollinger Bands contracted, suggesting a consolidation signal for Faber, and at the same time, implying that Faber is now gearing up for a new movement.
When the Bollinger Bands re-expands, it would be a signal suggesting a beginning of a new movement. If price should remain above the Bollinger Middle Band as the Bollinger Bands re-expands, it would be a bullish signal, suggesting that Faber is likely to resume its uptrend. On the other hand, if price should stay below the Bollinger Middle Band as the Bollinger Bands expands, it would be a bearish signal, thus a signal to take profit or to cut loss, for the next support is seen at RM 1.80 level.
| 4 Q Rolling PER | 8.78 times | Dividend Yield | 3% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 6 sen | 3.61% | 10.27% |
| 31/12/2008 | 4 sen | 5.97% | 23.29% |
| 31/12/2007 | 0 sen | 0% | 7.76% |
| 31/12/2006 | 0 sen | 0% | 5.95% |
| 31/12/2005 | 0 sen | 0% | 5.98% |
Table 1: Faber, yearly dividend, dividend yield, and net profit ratio.
Leader: Uptrend testing resistance.
Chart 2: Leader , from 16/11/2009 to 17/03/2010.
The T1 line as shown on chart 2 represents the uptrend line of Leader, but the resistance is at RM0.93 level. Therefore, price of Leader is forming an Ascending Triangle. An Ascending Triangle itself is a mid term uptrend pattern, but with a limited upside room capped by the resistance line. It has some bullish movement tendency but ultimately, it is the bullish break out above the resistance line that matters most. The RM0.93 resistance suggests some negative memories of traders, as it is a level where profit taking is likely to take place.
Technically, price has to break above the RM0.96 level, and then the T1 line should continue serving as the uptrend support line. Nevertheless, a bullish break out above the RM0.96 level has to be accompanied by strong volume, and the next resistance is seen at RM 1.00 level.
In contrary, if price should retreat now and break below the T1 line, it would mark an end to the mid term uptrend movement. Therefore, it would be a signal to take profit or to cut loss.
| 4 Q Rolling PER | 7.35 times | Dividend Yield | 3.33% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 3 sen | 3.31% | 2.74% |
| 31/12/2008 | 3 sen | 6.82% | 2.56% |
| 31/12/2007 | 3 sen | 2.75% | 2.34% |
| 31/12/2006 | 1.5 sen | 2.65% | 1.49% |
| 31/12/2005 | 0 sen | 0% | 1.37% |
Table 2: Leader, yearly dividend, dividend yield, and net profit ratio.
Unisem: Testing Resistance.
Chart 3: Unisem, from 16/11/2009 to 17/03/2010.
As shown on chart 3, price of Unisem was resisted by the RM 2.60 level, forming a Double Top pattern. A double Pattern suggests that investors have memory in the previous resistance level, and price is capped by this memory during a second rally, and as these investors take profit, price began falling, thus forming a Double Top.
Despite forming a Double Top pattern, as indicated by A, price of Unisem is still supported by the 14, 21, 31 EMA, which is serving as the dynamic support for the uptrend. But the upside room is still limited, unless price should break above the RM 2.60 level, with substantial volume.
Technical, a valid bullish break out should have strong volume together with price breaking above a resistance line. Meanwhile, investors can continue using the 14, 21, 31 EMA as the trailing guideline and provided that price is still staying above the 14, 21, 31 EMA, it is a good idea to hold, until price should break below the 14, 21, 31 EMA, it would be a signal to cut loss, or to take profit.
| 4 Q Rolling PER | 7.35 times | Dividend Yield | 3.33% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 2.5 sen | 1.14% | 5.97% |
| 31/12/2008 | 2.5 sen | 3.57% | 1.61% |
| 31/12/2007 | 10 sen | 6.06% | 12.25% |
| 31/12/2006 | 10 sen | 6.06% | 10.38% |
| 31/12/2005 | 8 sen | 5.76% | 3.92% |
Table 3: Unisem, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
Chart Patterns, Primary and Secondary Indicators often produce contradictory signals, and therefore, an analyst has to determine when is the best time to use different method or indicator, to suit different market conditions.
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