Muhibah – 5703: Possible uptrend formation.
Chart 1: Muhibah – 5703 as at 20/10/2010.
As shown on Chart 1, after a quick rally, price of Muhibah stopped advancing, and resisted by RM1.03 level, and consolidated. However, as indicated by A, after consolidated for about a week, price of Muhibah rebounded precisely above the 14, 2 1, 31 EMA, which is serving as the dynamic support, and broke above the RM1.30 resistance.
Meanwhile, price of Muhibah formed a higher-low after rebounding from the 14, 21, 31 EMA. This is a sign of an uptrend formation. If price should stay above the 14, 21, 31 EMA, there is a good chance that it could form an uptrend, and therefore, for those who are already in position, it is a good idea to hold for as long as price is supported by the 14, 21, 31 EMA. Until when price should break below the 14, 21, 31 EMA, it would be a signal to cut loss or to take profit. Next resistance for Muhibah is at RM1.10~RM1.14 while the support is still at the 14, 21, 31 EMA.
| Leading PER | 11.96 times | Dividend Yield | 2.58% |
| Dividend | Dividend Yield | ||
| 31/12/2009 | 2.5 sen | 2.72% | |
| 31/12/2008 | 2.5 sen | 2.53% | |
| 31/12/2007 | 4.5 sen | 1.20% | |
| 31/12/2006 | 7.5sen | 2.88% | |
| 31/12/2005· | 4.0 sen | 5.76% | |
Table 1: Muhibah – 5703, yearly dividend, dividend yield, and net profit ratio.
Revision of last week's Case Study: IJM – 3336: Technical correction.
Chart 2: IJM – 3336 as at 20/10/2010.As indicated by A, price of IJM retreated sharply as a form of a technical correction, but it managed to rebound from the 14-day EMA, which is serving as the dynamic support. Technically, as long as price of IJM is still above the 14, 21, 31 EMA, the uptrend is still intact.
Currently, RM5.45 is the immediate resistance for IJM and it is likely that price of IJM would consolidate in a sideways manner. Technically, the ideal consolidation would be a low fluctuation sideway movement. After the consolidation, and if price could still stay above the 14, 21, 31 EMA, there is a good chance that the uptrend would resume, but breaking above the RM5.45 resistance is a must.
| 4 Q Rolling PER | 18.99 times | Dividend Yield | 2.03% |
| Dividend | Dividend Yield | ||
| 31/03/2010 | 11 sen | 2.46% | |
| 31/03/2009 | 34.99 sen | 8.37% | |
| 31/03/2008 | 0 | 0 | |
| 31/03/2007 | 15 | 1.73 | |
| 31/03/2006 | 15 | 2.94 | |
Table 2: IJM – 3336, yearly dividend, dividend yield, and net profit ratio.
Airasia – 5099: New high!
Chart 3:Airasia – 5099 as at20/10/2010.
As shown on chart 3, after being resisted by RM2.25, price of Airasia went into a low-fluctuation sideways consolidation for about two weeks, but still firmly supported by the 14, 21, 31 EMA, dynamic support. This suggests that the uptrend is still intact.
As indicated by A, after consolidated for about two weeks, price of Airasia rebounded from the 14-day EMA, and later broke above RM2.25 resistance, making a historical new high, and resumed its uptrend. Meanwhile, as price of Airasia is rising, the 14, 21, 31 EMA is also rising, which continue serving as the dynamic support as well as a trailing stop reference.
Technically, it is a good idea to hold as long as the rising prices is supported by the 14, 21, 31 EMA. This way, investors can maximize the profit while staying as long as possible in the uptrend. If price should break below the 14, 21, 31 EMA, it would be a signal to take profit.
| 4 Q Rolling PER | 9.92 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | ||
| 31/12/2009 | 0 sen | 0.00% | |
| 31/12/2009 | 0 sen | 0.00% | |
| 31/12/2009 | 0 sen | 0.00% | |
| 31/12/2009 | 0 sen | 0.00% | |
| 31/12/2009 | 0 sen | 0.00% | |
Table 3: Airasia – 5099, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
It is important to note that even if one has bought a counter which is rising in an uptrend, it does not mean that it is risk free. Not until he or she has constructed a logical trailing stop method, and strictly following it.
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