Supermx – 7106: Forms Symmetrical Triangle
Chart 1:Supermx – 7106 (05/02/2010～02/06/2010)
As shown on chart 1, price of Supermx formed a Symmetrical Triangle, with L1 being a dynamic resistance, and L2 being a dynamic support. When price is forming a Symmetrical, its fluctuation is getting narrower, suggesting that Supermx is not only consolidating, but also preparing for a new movement, and the direction of the new movement shall be determined by the break out direction.
One of the advantages of a Symmetrical Triangle, is that it will usually give traders a 'timing' signal, and therefore, investors should be patience, while wait for the break out signal.
As indicated by A, price of Supermx is now testing the L2 dynamic support, and if price should break below this line, it would mark an end to the consolidation, suggesting a beginning of a downtrend formation. Other the other hand, if price should rebound from the L2 line and break above the L1 line, it would be a bullish break out, but it has to be confirmed by strong volume. Nevertheless, next resistance is at RM 7.03 and RM7.50, while the support is at RM5.75 and RM4.80.
| 4 Q Rolling PER | 10.62 times | Dividend Yield | 1.72% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 11 sen | 2.01% | 15.92% |
| 31/12/2008 | 3.25 sen | 4.06% | 5.58% |
| 31/12/2007 | 1.90sen | 0.63% | 13.85% |
| 31/12/2006 | 6.50sen | 1.56% | 10.49% |
| 31/12/2005 | 6.50sen | 1.46% | 12.74% |
Table 1: Supermx – 7106, yearly dividend, dividend yield, and net profit ratio.
KNM – 7164: Weak consolidation
Chart 2:KNM – 7164 (05/02/2010～02/06/2010)
As shown on chart 2, since breaking below the RM0.70 level, price of KNM has been trending down, and currently finding its support at around RM0.50 level. However, even though it is consolidating at RM0.50 level, the 14, 21, 31 EMA is still serving as a dynamic resistance, thus suggesting that the technical outlook for KNM is still weak.
As the US market rebounded, and many counters traded in Bursa Malaysia also rebounded. However, KNM did not follow the rebound but remains sideways. This implies that the buying interest of this counter is rather low.
If price should break below RM0.50, the RM0.50 would become a new resistance, in which it is a psychological level for investors wanting to break-even. Then, the 14, 21, 31 EMA shall continue serving as the dynamic resistance, and technical outlook is expected to be weak.
| 4 Q Rolling PER | 16.78 times | Dividend Yield | 0% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0% | 9.37% |
| 31/12/2008 | 1.5 sen | 3.70% | 13.30% |
| 31/12/2007 | 4.0 sen | 1.27% | 9.37% |
| 31/12/2006 | 5.0 sen | 0.57% | 14.56% |
| 31/12/2005 | 5.0 sen | 1.40% | 11.97% |
Table 2: KNM – 7164, yearly dividend, dividend yield, net profit ratio.
Revision of Last Week's Casa Study: Airasia – 5099: Strong technical but has not downtrend remains.
Chart 3: Airasia – 5099 (09/1/2009～02/06/2010)
As shown on chart 3, price of AirAsia rebounded from RM1.10 level, and the rebound was rather strong. However, after the technical rebound, price of AirAsia precisely tested the 14, 21, 31 EMA, suggesting that it has not broken away from its downtrend, as indicated by A.
If price should remain resisted by the 14, 21, 31 EMA, there is a risk of a resume of downtrend, and the next target would be at RM1.10 support. Therefore, it is a sign to cut-loss. On the other hand, if price could break above the 14, 21, 31 EMA, with strong volume, then only price could break away from this downtrend. Nevertheless, support is at RM1.10 while the resistance is at RM1.30
| 4 Q Rolling PER | 5.34 times | Dividend Yield | 0% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0sen | 0% | 17.27% |
| 31/12/2008 | 0sen | 0% | -17.87% |
| 31/12/2007 | 0sen | 0% | 38.90% |
| 31/12/2006 | 0sen | 0% | 31.07% |
| 31/12/2005 | 0sen | 0% | 10.25% |
Table 3: Airasia – 5099, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
Despite the technical rebound, the downtrend of the KLCI remains intact, and it is too early to see a reversal at the moment. It is generally a good practice to wait for the signal and not to trade too early. Of course, while waiting for the signal, investors should have their tradings plans ready.
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