After rising for a few consecutive days, the KLCI had its peak touching 1576.95 and started to retreat as profit taking took place. Despite the profit taking activities, the KLCI uptrend remains unaffected, as the dynamic support of 14, 21, 31 EMA remains intact. As a result, many counters are still trending up.
AIRASIA – 5099: Making historical new high again.
Chart 1: AIRASIA – 5099 as at 12/01/2011.
As shown on chart 1, price of AirAsia broke above the RM2.75 briefly a while ago, but it pullback back to below RM2.75, and the break out was a false one. However, as indicated by A, after the pullback, price of AirAsia was supported by the 14, 21, 31 EMA, and price rebounded strongly again, and this time breaking above the RM2.75 resistance, and marked a historical new high of RM2.86.
Technically, as long as price of AirAsia could stay above the 14, 21, 31 EMA, the uptrend shall remains intact, and as for those whom are already in position, it is a good idea to hold, until the uptrend is over. Provided that one should lift the cut loss level gradually higher according to the 14, 21, 31 EMA, and this way, it will slowly reduce trading risk while maximizing the potential of the uptrend.
As for those who had just bought, the cut loss level is at RM2.53. If price should continue rising, then investors shall apply the trailing stop reference using the 14, 21, 31 EMA.
| 4 Q Rolling PER | 9.14 times | Dividend Yield | 0.00% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0.00% | 17.27% |
| 31/12/2008 | 0 sen | 0.00% | -17.87% |
| 31/12/2007 | 0 sen | 0.00% | 38.90% |
| 31/12/2006 | 0 sen | 0.00% | 31.07% |
| 31/12/2005 | 0 sen | 0.00% | 10.25% |
Table 1: AIRASIA – 5099, yearly dividend, dividend yield, and net profit ratio.
E&O – 3417: Breaking away from its consolidation, uptrend yet to confirm.
Chart 2: E&O – 3417 as at12/01/2011.
As shown on chart 2, price of E&O breaks above the RM1.25 resistance level, breaking above the trading range. Price went up to RM1.38, but profit taking took place and stopped the price from rising. However, as indicated by A, despite the profit taking, price of E&O did not retreat sharply, and it is temporary consolidating in a sideways manner.
While price is consolidating now, it is also being supported by the 14, 21, 31 EMA as the 14, 21, 31 EMA is gradually moving closer to the price. If price of E&O should rebound from the 14, 21, 31 EMA, it would form a Higher-Low, thus an important characteristic of an uptrend. Generally, when price forms a higher-low, it can be viewed as a buy signal as well, as long as when price is rising, a proper trailing stop is applied, the trading risk is generally low. As for those whom are already in position, a good idea would be to hold as long as price is above the 14, 21, 31 EMA.
| 4 Q Rolling PER | 20.03 times | Dividend Yield | 2.90% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/03/2010 | 3.80 sen | 4.29% | 20.12% |
| 30/03/2009 | 0 sen | 0.00% | -12.45% |
| 30/03/2008 | 5 sen | 2.78% | 24.95% |
| 30/03/2007 | 4 sen | 1.84% | 5.76% |
| 30/03/2006 | 0 sen | 0.00% | 12.93% |
Table 2: E&O – 3417, yearly dividend, dividend yield, and net profit ratio.
MYEG – 0138: Gap up breaking resistance.
Chart 3: MYEG – 0138 as at 12/01/2011.
As shown on chart 3, price of MYEG has been testing the RM 0.835 resistance for many times, and therefore, the upside room was limited by this resistance.
As indicated by A, price of MYEG gapped up on the 12th of January, breaking above the RM 0.835 resistance. At the same time, volume traded increased significantly, as indicated by B, and this suggests that there was a strong inflow of fresh capital to off set the selling pressure at the resistance, thus able to push the price higher, and breaking away from the resistance which lasted for 7 months.
Technically, when price break out from a resistance, it should stay above the RM0.835 level, or else, a pullback below this level would announced a false break out. Therefore, the RM0.835 is the base line for now. Once price of MYEG continue rising, then only investors could use the 14, 21, 31 EMA as a trailing stop reference, then as long as price should stay above the 14, 21, 31 EMA, it is a good idea to hold. As for those investors whom are uncomfortable to hold, he or she may choose to take profit partially.
| 4 Q Rolling PER | 27.73 times | Dividend Yield | 0.55% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2010 | 0.5 sen | 0.69% | 33.61% |
| 30/06/2009 | 1.82 sen | 4.18% | 32.77% |
| 30/06/2008 | 2.00 sen | 2.21% | 29.99% |
| 30/06/2007 | 0 sen | 0.00% | 27.71% |
| 30/06/2006 | 0 sen | 0.00% | 0.00% |
Table 3: MYEG – 0138, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
When the broad market is still bullish, many individual counters are staying in their uptrend, some are even making new high. However, it is still important that one should honor their own trading plan, and know the maximum risk that they can afford.
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