ECONBHD

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, ECONBHD to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

--ECONBHD Daily Chart--

Since its listing on the main board, Econbhd has been riding on an uptrend.  From 0.605, it trended up to a high of 1.22 before it went into a consolidation phase.  The uptrend was halted by the subsequent break down in the uptrend line on 28/8 when it broke 1.01 .  Consequently, it was traded to a low of 0.955 before finding traction at 0.965 where it settled into a support base.  The current consolidation phase appears to be over and it is expected to test its immediate resistance at 1.13 backed by an immediate support of 1.05 .

Overcoming 1.13 would set it off to trend towards the previous uptrend line which is now the  resistance at 1.22. A successful penetration of  1.22 would signal a trend reversal and it is expected to challenge its immediate target of 1.30 and beyond. The recommended stop loss price is 0.95.

UPDATE on TEKSENG - A 3rd FLAG?

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have provided an update on the stock, TEKSENG to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Tekseng - Daily Chart 

Since our last posting on 1 Sept, 2014, Tekseng has broken out from its 2nd flag formation on 4/9 with volume to test its resistance at 0.70.  It successfully broke through this resistance on 5/9 supported with good volume to move into unchartered territory that yielded the year's high of 0.875. 

It is currently consolidating under a 3rd flag (Flag 3) formation that comes with a support of 0.78. A successful take out of its resistance at 0.835 would signal another bullish breakout from the flag.  It is then expected to re-challenge the resistance at 0.875 before confronting the psychological resistance of 0.90.  Should it clear these 2 hurdles, it would indeed scale another new high with immediate target prices of 0.95 and 1.00 respectively. However, if its support is penetrated, it would signal weaknesses in the stock.  The recommended stop loss is 0.75/0.76.

FITTERS

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, FITTERS to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

-- FITTERS Weekly Chart --

Fitters has been on a bullish run that started in May 2013 and persisted into 2014.  Based on its weekly chart, the past 2 weeks saw the formation of 2 spinning top candles in succession, an indication of indecision setting into the stock.  The resultant direction of its price movement from this indecision can be either up or down.  In view that its uptrend is still intact, the spinning top may be a continuation pattern of its uptrend provided it can break and scale above 1.38 with an immediate target of 1.60.  However, if it breaks below 1.29, this will be the first sign of weakness in the stock.  A stop loss of 1.15 is recommended for mid term traders.

 

 -- FITTERS Daily Chart --

After hitting a high of 1.38, it formed a bearish harami on 27/8, implying that it is due for some correction.  It did underwent correction but its uptrend remains intact.  The breakaway gap formed on 22/8 has bullish implications for further upward movements which would take it to its resistance at 1.38.  A successful take-out of this resistance will see it trend towards its target prices at 1.46, 1.56 and 1.66.  Any weakness due to consolidation should find immediate support at 1.29/1.30 with the cushion of strong support at 1.25/1.23, the gap support.  This weakness may offer buying opportunities for future play.  For short term traders, the recommended stop loss is 1.22.

Key Notes:

1. For the cumulative period ending 30 June, 2014, it recorded a 3.5% increase in profits before tax on the back of a 21% increase in revenue.
2. Recently announced a proposed bonus issue and free warrants.
3. Since diversifying into property development in 2010, it is now venturing into the pipe business with the completion of its pipe manufacturing plant in Gebeng, Kuantan due for completion by the 4th quarter of 2014.  The plant would be commissioned in October starting with three production lines first, which should be able to churn out RM150mil in revenue for the company.

Reference:

1. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1722573
2. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1725893
3. Star Biz, Aug 11, 2014

TEKSENG

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, TEKSENG to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

--TEKSENG Daily chart--

--TEKSENG Weekly Chart--

Tekseng is bullish after breaking out from its round bottom formation.  On the daily chart, there were two breakouts that was accompanied with volume.  On the first breakout on 11/8, it scaled to a high of 0.50 before consolidating into a flag pattern (flag 1).  

The second breakout came on 22/8, supported with an even higher volume and it attained a new high of 0.645. The bearish harami that ensued, signals a period of uncertainty that could descend onto the stock which it did. It is now trading in its second flag formation (flag 2) with a support of 0.545.  A breakout from its current resistance of 0.595/0.60 will set it off to test its important resistance at 0.645/0.65.  It will encounter strong resistance at 0.70 before attempting to realize its immediate target price of 0.73/0.75.  A stop loss of 0.51 is recommended for short term traders while for mid term traders, a stop loss of 0.48 is suggested..   

Key Notes:

1. The company reported an improved performance for the first half of 2014 with revenue increasing 26% while profits before tax increased almost 6 fold over the corresponding period of last year 

References:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1717681