Kencana – 5122: Remains in uptrend.
Chart 1: Kencana – 5122 as at 16/11/2010.
Despite the KLCI taking a technical correction, price of Kencana stays in its uptrend, and the 14, 21, 31 EMA is still serving as the dynamic support to Kencana. Although price retreated after hitting RM2.11 resistance, the correction was rather mild, and now price of Kencana is consolidating.
As long as price should stay above the 14, 21, 31 EMA, the technical outlook shall remains positive.If one should feel uncomfortable during the market correction, one could consider partial profit taking, while the rest of stocks should hold with the 14, 21, 31 EMA as the trailing stop reference.
As for those who are interested in taking up a new position, then an ideal buy signal would be a formation of higher-low, with increased of volume, and immediate after buying, the 14, 21, 31 EMA should be used as a trailing stop reference.
| 4 Q Rolling PER | 18.71 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/07/2010 | 0 sen | 0.00% | 12.46% |
| 31/07/2009 | 0.1 sen | 0.00% | 10.36% |
| 31/07/2008 | 0 sen | 0.00% | 5.86% |
| 31/07/2007 | 0 sen | 0.00% | 6.93% |
| 31/07/2006 | 0 sen | 0.00% | 0.00% |
Table 1: Kencana – 5122, yearly dividend, dividend yield, and net profit ratio.
Bursa – 1818: Breaking below the dynamic support.
Chart 2: Bursa – 1818 as at 16/11/2010.
As shown on chart 2, price of Bursa has been testing the RM8.66 resistance a few times, and stayed in a consolidating stage for about 3 weeks, but at the same time, it was also supported by the 14, 21, 31 EMA, and therefore, it has not shown any weakness yet.
However, as indicated by A, price of Bursa declined gradually, and breaking below the 14, 21, 31 EMA by margin. This implies that the price of movement of Bursa is weakening. Unless price could return to above the 14, 21, 31 EMA, the technical outlook for Bursa is expected to turn negative.
Technically, if price should form a Lower-high below the 14, 21, 31 EMA, it would be a characteristic of a downtrend formation. As for those who has followed their trading plan, it would be a signal to take profit when price breaks below the 14, 21, 31 EMA. Next support for Bursa is seen at RM8.16.
| 4 Q Rolling PER | 24.78 times | Dividend Yield | 2.27% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 19.10 sen | 2.46% | 44.13% |
| 31/12/2008 | 24.30 sen | 4.72% | 31.48% |
| 31/12/2007 | 85.00 sen | 5.94% | 48.91% |
| 31/12/2006 | 54.50 sen | 6.77% | 41.55% |
| 31/12/2005 | 20.00 sen | 5.46% | 42.13% |
Table 2: Bursa – 1818, yearly dividend, dividend yield, and net profit ratio.
MEGB – 5166: New low.
Chart 3: MEGB – 5166 as at 16/11/2010.
As shown on chart 3, price of MEGB were temporary supported by the RM2.25 level, but as indicated by A, it fell below RM 2.25 level, making a new low. Although it seems like when price is touching new low, it was a lowest price, it does not mean that price should rebound the next day; in fact, one should realize that price could very well go down even more the next day.
Trying looking it at a different way, when stock price is making new low, the selling pressure is higher than the buying interest. This is because all investor who had bought earlier above RM2.25 are now making losses, some could not even break even, thus they are likely to be ready sellers.
This is why, we kept mentioning that it is important to buy with the uptrend, when price is rising, not when price is dropping. One must learn to avoid the though of 'buying cheap'. Nevertheless, since MEGB is making a new low, there is no valid support for now, until a rebound of price.
Conclusion:
When stock price started to retreat, it does not mean that it would form a downtrend right away. When a stock price makes new low, it does not mean that it is the lowest price of all, chances are it could fall even lower.
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。
