Despite alternative fuels are being introduced, the demand for crude oil and crude oil related products remains high for the long run. Therefore, the oil and gas sector is still a sector worth looking at. However, this does not mean that all oil and gas related companies are good pick. Therefore, before picking up any counters, one should carefully study the behaviors and look for the one that is moving. Here are some examples:
SAPCRES – 8575: Remains in an uptrend.
Chart 1: SAPCRES – 8575 as at 15/12/2010.
As shown on chart 1, since breaking above the RM2.45 resistance on the 25th of October, price of Sapcres remains in an uptrend, and supported by the 14, 21, 31 Exponential Moving Average – EMA, dynamic support. Meanwhile, it is clearly noticeable that the characteristic of the price movement in the uptrend, which is formation of higher-lows. In other words, every time the stock price retreat as a correction and it rebounded, forming a turning point, but this turning point is higher than the previous turning point.
Technically, if price should stay above the 14, 21, 31 EMA, with continuation of the higher-low formation, the uptrend is still intact. As long as the trailing stops using the 14, 21, 31 EMA is in place, the risk of holding this uptrend is likely to be low. As a general rule, when price is moving in an uptrend, the idea of a trailing stop is to raise your stop loss or profit taking level gradually according to the 14, 21, 31 EMA level. Immediate resistance for Sapcres is seen at RM3.00
| 4 Q Rolling PER | 18.90 times | Dividend Yield | 2.39% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/01/2010 | 7 sen | 2.97% | 5.23% |
| 31/01/2009 | 5 sen | 6.71% | 3.32% |
| 31/01/2008 | 2 sen | 1.33% | 3.46% |
| 31/01/2007 | 2 sen | 2.78% | -1.00% |
| 31/01/2006 | 3 sen | 3.73% | 4.13% |
Table 1: SAPCRES – 8575, yearly dividend, dividend yield, and net profit ratio.
RAMUNIA – 7206: Testing RM0.45 Resistance. *
Chart 2: RAMUNIA – 7206 as at 15/12/2010.
As shown on chart 2, price of Ramunia is picking up some strenght lately, and forming a higher-low. However, it is still capped under the RM0.45 resistance, and as a result, the upside room remains limited, unless price could break above the RM0.45 successfully, then only the uptrend could sustain.
Price of Ramunia tested the RM0.45 on the 9th of December, and retreated since then. As indicated by A, if price of Ramunia could rebound from the 14, 21, 31 EMA, it would form another higher-low, but the important key factor is still the break out above the RM0.45 resistance.
As for those who are already in position, it is a good idea to hold as long as the price is above the 14, 21, 31 EMA. As price is rising, gradually lift the cutloss of profit taking level accordingly to the 14, 21, 31 EMA. As for those who are looking for an entry, it is better to wait for a valid break out, since the distance of the breakout from the 14, 21, 31 EMA is not far away.
* Please note that Ramunia is currently a PN17 status Company.
| 4 Q Rolling PER | 4.06 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/10/2010 | 0 sen | 0.00% | 195% |
| 31/10/2009 | 0 sen | 0.00% | -15.48% |
| 31/10/2008 | 0 sen | 0.00% | -77.55% |
| 31/10/2007 | 0 sen | 0.00% | 3.37% |
| 31/10/2006 | 0 sen | 0.00% | 5.02% |
Table 2: RAMUNIA – 7206, yearly dividend, dividend yield, and net profit ratio.
PERISAI – 0047: Remains in a trading range.
Chart 3: PERISAI – 0047 as at 15/12/2010.
Chart 1 of Sapcres is showing the characteristic of a strong uptrend, while chart 2 of Ramunia is showing an uptrend just forming but with limited upside room. As for chart 3, it is an example of a trading range, in which it has not form any trend yet. As shown on chart 3, price of Perisai rebound from the RM0.495 level on the 6th of December, and therefore, it avoided the formation of a downtrend.
Although it does not form a downtrend, it does not form any uptrend yet. Technically, price must first break above the 14, 21, 31 EMA, then form a higher-low with strong volume, then only these are the characteristics of an ideal uptrend.
Furthermore, the RM0.57~RM 0.59 is the next important resistance for Perisai, and as it is shown on the chart 3, price of Perisai was resisted many times at this level. Technically, this means that there are many negative memory at this level, where many traders or investors lose money at this level. Therefore, the selling pressure is likely to be high. This also explains why it is easier for a stock to move higher when it is trading in an uptrend, and it is usually harder for a reversal when a stock is falling in a downtrend. Because of negative memories.
| 4 Q Rolling PER | 0 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0.00% | 32.60% |
| 31/12/2008 | 0 sen | 0.00% | 20.98% |
| 31/12/2007 | 0 sen | 0.00% | 7.55% |
| 31/12/2006 | 0 sen | 0.00% | 4.28% |
| 31/12/2005 | 2 sen | 1.65% | 13.49% |
Table 3: PERISAI – 0047, yearly dividend, dividend yield, and net profit ratio.
Other Related Oil and Gas Companies:
| Companies | Technical Reading |
| [KENCANA - 5122] | Remains above the 14, 21, 31 EMA and in an uptrend. |
| [DIALOG - 7277] | Remains above the 14, 21, 31 EMA and in an uptrend. |
| [TGOFFS - 7228] | Technical rebound in a downtrend, and testing 14, 21, 31 EMA. |
| [SCOMI - 7158] | Short term technical rebound. |
| [ALAM - 5115] | Fell below the 14, 21, 31 EMA, and now technically rebounding, but testing the 14, 21, 31 EMA. |
| [WASEONG - 5142] | Technical rebound, but downtrend remains intact. |
| [DAYANG -5141] | Consolidating in an uptrend. |
Conclusion:
Not only we should equipped our selves with the skills of technical analysis, we must need to understand the market sentiment and psychology as well, and never try to catch any cheap stocks while they are falling. It's rather easier to say than to execute, and to be confident in our own analysis is another thing that many are yet to achieve. It takes years of careful studies, and we gradually nurture our patience, before there is a chance of succeed in the stock market.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。
