Revision of last week's case study: CIMB - 1023: Uptrend intact.
Chart 1: CIMB - 1023 (18/05/2010～08/09/2010)
As shown on chart 1, price of CIMB tested the RM8.00 resistance again, and despite it had touched its height of RM8.04, it has failed to close above the RM8.00 level, and therefore, immediate resistance for CIMB is still at RM8.00.
Although RM8.00 is being its immediate resistance, the uptrend for CIMB remains intact as it is still supported by the 14, 21, 31 EMA, which is the dynamic support. In other words, provided that price is still above the 14, 21, 31 EMA, the technical outlook shall remains positive, and it would be a good idea to hold on to the position, until price should break below the 14, 21, 31 EMA, then it would be a signal to take profit or to cut loss.
Meanwhile, if price should rebound from the 14, 21, 31 EMA, and break above the RM8.00 level, it would be another buy signal. But immediately after buying, investors should apply the 14, 21, 31 EMA as a trailing stop reference.
| 4 Q Rolling PER | 10.05 times | Dividend Yield | 2.31% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 18.50 sen | 1.46 % | 26.31 % |
| 31/12/2008 | 25.00 sen | 4.27 % | 25.22 % |
| 31/12/2007 | 25.00 sen | 2.27 % | 31.00 % |
| 31/12/2006 | 15.00 sen | 1.94 % | 23.53 % |
| 31/12/2005 | 15.00 sen | 2.63 % | 17.51 % |
Table 1: CIMB - 1023, yearly dividend, dividend yield, and net profit ratio.
Unisem - 5005: Downtrend.
Chart 2: Unisem – 5005 (18/05/2010～08/09/2010)
As shown on chart 2, price of Unisem broke below the 14, 21, 31 EMA on the 2nd of August, and since then, it has formed a downtrend. Although price technically rebounded on the 12th of August, it failed to break above the 14, 21, 31 EMA, and formed a lower-high, as indicated by A, thus the downtrend is still intact. With 14, 21, 31 EMA serving as the dynamic resistance.
Technically, provided that price is still resisted by the 14, 21, 31 EMA, the technical outlook shall remains weak, which means that price is still in downtrend. Therefore, it is important that investors do not try to catch any rebound or try to catch the bottom. There is no reversal until a formation of a Higher-low.
If price should break above the 14, 21, 31 EMA, and later form a higher-low, with strong volume, it would be an ideal buy signal. But however, immediate after buying, investors should apply the 14, 21, 31 EMA as a trailing stop reference.
| 4 Q Rolling PER | 17.17 times | Dividend Yield | 1.3% |
| 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 2: Unisem – 5005, yearly dividend, dividend yield, and net profit ratio.
AirAsia - 5099: Uptrend intact.
Chart 3: AirAsia - 5099 (18/05/2010～08/09/2010)
As shown on chart 3, since 6th of July, price of Airasia broke above the 14, 21, 31 EMA, and since then, it is still staying in uptrend, gaining upto RM0.64 or 49.5%. Meanwhile, during its uptrend, the 14, 21, 31 EMA continue to serve as the dynamic support. In other words, as long as price is still above the 14, 21, 31 EMA, it is a good idea to hold on to the position, until price should break below the 14, 21, 31 EMA, then it would be a signal to take profit or the cut loss.
Meanwhile, other than the 14, 21, 31 EMA dynamic support, the uptrend of Airasia shows a very good example of the uptrend characteristic, which are higher-low and new high. In other words, a higher-low is the rebound above the 14, 21, 31 EMA higher than its previous rebound point, while new high means a price level breaking above the latest resistance. Therefore, the most ideal entry point would be at the higher low, and once bought, investors should apply the 14, 21, 31 EMA as the trailing stop reference. Resistance for Airasia is at RM1.93.
| 4 Q Rolling PER | 7.61 times | Dividend Yield | 0 % |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0 % | 17.27 % |
| 31/12/2008 | 0 sen | 0 % | -17.87 % |
| 31/12/2007 | 0 sen | 0 % | 38.90 % |
| 31/12/2006 | 0 sen | 0 % | 31.07 % |
| 31/12/2005 | 0 sen | 0 % | 10.25 % |
Table 3: Airasia - 5099, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
Since many counters are still trending down, and the market is not entirely bullish, it requires careful selection before picking up any stock. In reality, buying stock which is trending up makes sence, but it is hard to do, for the price is usually high, therefore, only a trained person, can manage to follow trend, while the majority of investors still subscribe to the average believe on buy low sell high.
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