IJMLAND – 5215: Uptrend, testing RM3.25 resistance.
Chart 1: IJMLAND – 5215 as at 22/12/2010.
As shown on chart 1, after hitting RM3.25 on the 25th of November, price of IJMLand retreated as a technical correction. However, after the correction, price was supported by the 14, 21, 31 EMA, and this suggests that the uptrend remains intact. Therefore, investors could still hold this counter.
As indicated by A, after being supported by the 14, 21, 31 EMA, price of IJMland started rising again, and this time, re-testing the RM3.25 resistance. If price could break above RM3.25, it would make room for the uptrend to continue, and the next resistance would be at RM3.50.
On the other hand, if price should prolong its consolidation, it would eventually break below the 14, 21, 31 EMA. But this does not mean that it would reverse and form a downtrend immediately, unless price should break below RM2.98 ~ RM3.00 support, then forms a lower-high, then it would be a signal suggesting a downtrend formation.
| 4 Q Rolling PER | 27.46 times | Dividend Yield | 0.63% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/03/2010 | 2 sen | 0.97% | 9.87% |
| 31/03/2009 | 0 sen | 0.00% | 7.62% |
| 31/03/2008 | 0 sen | 0.00% | 14.13% |
| 31/03/2007 | 0 sen | 0.00% | -2.76% |
| 31/03/2006 | 0 sen | 0.00% | 9.07% |
Table 1: IJMLAND – 5215, yearly dividend, dividend yield, and net profit ratio.
MALTON – 6181: In Symmetrical Triangle Consolidation.
Chart 2: MALTON – 6181 as at 22/12/2010.
As shown on chart 2, price of Malton started falling on the 11th of November, and it fell below the 14, 21, 31 EMA. However, it was later supported by RM0.69~RM0.70 level, and price rebounded. Although price rebounded from RM0.70, it has failed to return to its recent high of RM0.83, and instead, forming a high at RM0.80. As a result, it formed the L1 descending line.
Technically, the L1 line outlines the formation of Lower-high, which suggests a weakening movement. However, after forming the L1 line and price of Malton started falling for a few days, it rebounded again, thus forming the L2 ascending line. The L2 ascending line outlines the formation of a higher-low, which suggests an improving price movement. Therefore, the L1 and L2 lines are giving conflicting signals, and eventually, this formed a Symmetrical Triangle Patterns, and this Symmetrical Triangle represent a consolidation with equal strength on both bullish and bearish movement.
Generally, it is not a good idea to trade within a Symmetrical Triangle, as the direction is unclear. It is usually safer to make trading decision until a valid break out, above or below the Symmetrical Triangle. If price could break above the L1 line with strong volume, then it means that price could have a chance to resume its uptrend, and if investors should buy with t his signal, a good idea is to apply the 14, 21, 31 EMA as a trailing stop reference after buying. On the other hand, if price should break below the L2 line, it means that the consolidation is over, and price could reverse, and the weakening price movement would continue. It is a risky move to try to buy when price breaks below the L2 line.
| 4 Q Rolling PER | 12.52 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2010 | 0 sen | 0.00% | 6.30% |
| 30/06/2009 | 0 sen | 0.00% | 1.54% |
| 30/06/2008 | 0 sen | 0.00% | -1.18% |
| 30/06/2007 | 0 sen | 0.00% | 0.62% |
| 30/06/2006 | 0 sen | 0.00% | 1.59% |
Table 2: MALTON – 6181, yearly dividend, dividend yield, and net profit ratio.
SPSETIA – 8664: Uptrend remains intact.
Chart 3: SPSETIA – 8664 as at 22/12/2010.
As shown on chart 3, price of Spsetia broke above the RM5.30 resistance level on the 8th of December, and ended its consolidation. The break out of Spsetia allowed its price to extend the uptrend. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support as well as the trailing stop reference.
Technically, whenever price forms higher-low during an uptrend, is an ideal buy signal. The only key factor to control trading risk is to apply a trailing stop after buying, and generally, the 14, 21, 31 EMA is rather suitable. The idea of a trailing stop is to lift profit taking or cut loss level slowly according to the rising 14, 21, 31 EMA. This way, as price is moving higher, the cut loss level is also rising, and eventually reducing risk and protect paper profit.
As for those who are already in position, it is a good idea to hold, as long as price is above the 14, 21, 31 EMA. Immediate resistance for Spsetia is at RM5.75~RM 5.78 while the support is at RM5.30.
| 4 Q Rolling PER | 23.54 times | Dividend Yield | 3.50% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/10/2010 | 20 sen | 3.58% | 14.42% |
| 31/10/2009 | 14 sen | 3.62% | 12.16% |
| 31/10/2008 | 17 sen | 6.12% | 16.07% |
| 31/10/2007 | 18.4 sen | 2.36% | 22.54% |
| 31/10/2006 | 22.50 sen | 5.74% | 20.81% |
Table 3: SPSETIA – 8664, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
As a rule of thumb, when selecting stocks, go for the leader, and never buy cheap. When buying those stocks which are rising in an uptrend, the selling pressure is generally lower, whereas the selling pressure in the falling stocks are high.
Copyright © 2009 Straits Index (M) Sdn BhdImportant Disclaimer:These content provided by Straits Index (M) Sdn Bhd is solely for education and information purposes only, and do not suggest any investment advices. All information displayed are believed to be accurate and reliable. Interpretation of the data or analysis is at the reader's own risk. Straits Index (M) Sdn Bhd reserves the rights but obligations to update, admen, or even terminate the materials. 重要声明:以上的内容由海峡指数(马)私人有限公司提供,纯粹是教育性质, 并不是任何的投资忠告。所有资料显示认为是准确和可靠的。对数据或分析的解释和用途是在于用户自己的风险。海峡指数(马)有限公司持有保留及义务更新,甚 至终止材料的权利。
