Gamuda: Uptrend remains intact.
Chart 1: Gamuda – 5398 as at 29/09/2010.
As shown on chart 1, price of Gamuda is still trending up, while continuously supported by the 14, 21, 31 EMA. Basically, as long as price is still above the 14, 21, 31 EMA, it is a good idea to hold, until the uptrend is over.
Immediate resistance for Gamuda is seen at RM3.98 and this is a highest level since 21st of February, 2008. Although price of Gamuda was resisted at RM3.98, the retreat was mild, entering a consolidation stage. Technical, there is no buy signal when price is moving sideways, but investors should be ready for a break out of resistance, or other wise, a break below the 14, 21, 31 EMA.
If price could rebound from the 14, 21, 31 EMA, and break above RM3.98, it would be a bullish signal suggesting a resume of its uptrend, and investors should continue to hold and apply the 14, 21, 31 EMA as a trailing stop.
On the other hand, if price should continue its sideways movement and break below the 14, 21, 31 EMA, either a prolong sideways movement or a possible formation of a downtrend, there is no suitable reason for any one to hold. Thus, a signal to take profit. Support for Gamuda are found at RM3.50 followed by RM3.35.
| 4 Q Rolling PER | 27.68 times | Dividend Yield | 3.12% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/07/2009 | 12 sen | 3.16 % | 11.43 % |
| 31/07/2008 | 8 sen | 2.38 % | 7.10 % |
| 31/07/2007 | 25 sen | 9.26 % | 13.52 % |
| 31/07/2006 | 46 sen | 5.90 % | 12.23 % |
| 31/07/2005 | 16 sen | 4.57 % | 13.74 % |
Table 1: Gamuda – 5398, yearly dividend, dividend yield, and net profit ratio.
UEMland – 5148: Uptrend intact.
Chart 2: UEMland – 5148 as at 29/09/2010.
Despite the KLCI is temporary being capped by the 1480 resistance, price of UEMland hit historical new high. As shown on chart 2, price of UEMLand continue its uptrend while supported by the 14, 21, 31 EMA, and therefore, investors who has bought this can continue to hold, as long as the 14, 21, 31 EMA dynamic support is still intact.
When price is making new high, most investors are afraid that price is too high and might start falling, thus thinking to take profit, but only to realize that after taking profit, price could go even higher. Do remember that all investors buy stock to make money, and as long as they are making money, during an uptrend, the selling pressure is lower, and the greed is higher.
In short, the most important thing is a sound trading plan, and as long as investors have a trailing stop reference is being used.
| 4 Q Rolling PER | 38.22 times | Dividend Yield | 0% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0 % | 28.44 % |
| 31/12/2008 | 0 sen | 0 % | 14.50 % |
Table 2: UEMland – 5148, yearly dividend, dividend yield, and net profit ratio.
XDL – 5156: Failing to break resistance, uptrend might be ended.
Chart 3: XDL – 5156 as at 29/09/2010.
As shown on chart 3, XDL has been staying above the T1 uptrend for about 3 months, and since 25thof June, price of XDL has risen RM0.16 in value or 44%. As indicated by A, price of XDL is now breaking below the T1 line, after resisted by RM0.525, but fortunately, the downside movement was rather mild.
Since it has broken below the T1 uptrend, as well as breaking below the 14, 21, 31 EMA, there is a risk of a downtrend formation. In other words, for investor who had bought earlier, when price break below the 14, 21 ,31 EMA, it would be a signal to take profit. Next support for XDL is at RM0.45 while the resistance remains at RM0.525.
| 4 Q Rolling PER | 2.64 times | Dividend Yield | 0 % |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0 % | 17.77 % |
Table 3: XDL – 5156, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
Most investors are afraid to buy when price is rising in an uptrend, and this is natural, because almost all human are taught to buy things at a lower price when possible. However, in trading, it is the opposite. As long as there is a trailing stop and trading plan, buying in an uptrend is less risky, with higher chance of success.
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