Bjcorp – 3395: Break away from its downtrend.
Chart 1: Bjcorp – 3395 (24/05/2010 ~ 15/09/2010 )
As shown on chart 1, price of Bjcorp broke above the T1 downtrend line, which lasted for 5 months, breaking away from its downtrend. As indicated by A, price of Bjcorp might be forming a higher-low but without sufficient volume, suggesting that the buying interests is still low.
Nevertheless, since price of Bjcorp has been falling for the past 5 months, and its share price has loosed up to 50%, and any reversal would be resisted by many selling pressure. This is because many of the investors who had bought Bjcorp during the past 5 months are mostly losing money, thus most of them are getting ready to break even, and as a result, there are a huge numbers of ready sellers. This is why a reversal will generally takes longer to form.
Technically, if investors should follow the break out signal and buy, he or she must apply the 14, 21, 31 EMA as the trailing stops reference. This is because there is a bigger chance for Bjcorp to move into a trading range then to form an uptrend immediately. Support for Bjcorp is at RM0.925 whiel the resistance is at RM1.15 level.
| 4 Q Rolling PER | 51.11 times | Dividend Yield | 0.95% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/04/2010 | 1 sen | 0.79 % | 1.23% |
| 30/04/2009 | 3.35 sen | 3.99 % | -0.83 % |
| 30/04/2008 | 9 sen | 8.11 % | 17.20 % |
| 30/04/2007 | 0 sen | 0 % | 5.75 % |
| 30/04/2006 | 0 sen | 0 % | -24.33 % |
Table 1:Bjcorp – 3395, yearly dividend, dividend yield, and net profit ratio.
Gamuda – 5398: New high, and uptrend continue.
Chart 2: Gamuda – 5398 (24/05/2010 ~ 15/09/2010 )
As indicated by A, price of Gamuda broke above the RM3.50 resistance on the 1st of September, 2010, and later price pulled back due to profit taking, but it managed to stay above the 14, 21, 31 EMA, and formed a higher-low, suggesting that the uptrend is still intact. The higher-low was an ideal entry level.
Technically, investors who had followed the higher-low as an entry point should also apply the 14, 21, 31 EMA as the dynamic support, as well as the trailing stops reference. If price should stay above the 14, 21, 31 EMA, it would be a good idea to keep the stock as the uptrend is still intact. If price should break below the 14, 21, 31 EMA, it would be a signal to take profit. Nevertheless, next resistance for Gamuda is at RM4.00 while the support, remains at 14, 21, 31 EMA.
| 4 Q Rolling PER | 30.13 times | Dividend Yield | 2.16% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/07/2010 | 8 sen | 2.38 % | 7.10% |
| 31/07/2009 | 25 sen | 9.26 % | 13.52 % |
| 31/07/2008 | 46 sen | 5.90 % | 12.23 % |
| 31/07/2009 | 16 sen | 4.57 % | 13.74 % |
| 31/07/2006 | 16 sen | 3.43 % | 17.26 % |
Table 2: Gamuda – 5398, yearly dividend, dividend yield, and net profit ratio.
Revision of last week's case study: Genting – 3182: New high.
Chart 3: Genting – 3182 (24/05/2010 ~ 15/09/2010 )
As shown on the chart above, price of Genting rebounded strongly from the 14, 21, 31 EMA, breaking above the RM9.62 resistance, making a new high since the share split in 2007. Price of Genting later hit RM10.02 level, and profit taking activities pulled back its price slightly. Therefore, the immediate resistance for Genting is at RM10.00 level while the support is still at 14, 21, 31 EMA.
Technically, provided that price of Genting is still above the 14, 21, 31 EMA, it means that the uptrend is still intact, thus a good idea to hold, until price should break below the 14, 21, 31 EMA, then it would be a signal to take profit.
Please note that the characteristic of Genting uptrend is higher-low formation above the 14, 21, 31 EMA and breaking above the latest resistance. It is crucial to identify the uptrend characteristic before one should pick up any shares. After buying, he or she should apply the 14, 21, 31 EMA as a trailing stops reference, and so long as the price is still above the 14, 21, 31 EMA, investors should hold until the uptrend is over, in which the price would break below the 14, 21, 31 EMA.
| 4 Q Rolling PER | 23.24 times | Dividend Yield | 0.72% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 7.20 sen | 1.14 % | 11.74 % |
| 31/12/2008 | 7.00 sen | 1.89 % | 6.27 % |
| 31/12/2007 | 37 sen | 0.98 % | 12.15 % |
| 31/12/2006 | 32 sen | 0.97 % | 21.56 % |
| 31/12/2005 | 29 sen | 1.36 % | 22.86 % |
Table 3: Genting – 3182, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
It is not difficult to comprehend the idea of buying along the uptrend, but it is absolutely difficult to execute this mindset. Of course, there are many other types of method in buying shares, but as long as investors could find a comfortable yet profitable method, he or she should stick to it. Higher-low trend trading is one of them.
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