Technical Code Breaker - Stock in Focus: KLSE

Showing posts with label KLSE. Show all posts

Tuesday, 9 September 2014

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:

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.
Recently announced a proposed bonus issue and free warrants.
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:

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

Monday, 1 September 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

Sunday, 24 August 2014

Stock in focus of the week - SMRT

Periodically, TCB will pick a stock we may like to trade short term, so this week TCB have picked the stock SMRT 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/Rewards ratio if you decided to trade this counter.

--SMRT Weekly Chart--

After hitting a high of 0.945 during the week of 15/8, it formed a bearish engulfing candle during the subsequent week which could possibly be a precursor to some consolidation. However, its bullish trend remains intact in view that its uptrend line has not been broken through. Strong resistance is expected at 0.93 generated by the engulfing bear. A break in 0.93 with volume would consequentially take out its 0.945 resistance and set it off into unchartered territory. For the mid-term, it should have good support at 0.805. A stop loss of 0.785 is recommended for mid-term traders.

--SMRT Daily Chart--

Due to the sell down on 20/8, SMRT too came under selling pressures and panic selling brought its price down to a low of 0.815. It has now found immediate support at 0.83. The low volume on 22/8 provided a slight hint of sellers exhaustion, subject to further confirmation. As the stock remains bullish, the current consolidation phase offers an opportunity to accumulate for any potential run up in price. If it can successfully take out its resistance at 0.905 with volume, it is expected to challenge its high of 0.945. However, it will encounter strong resistance at 1.00, a psychological barrier, before it moves into unchartered territory with an immediate target price (TP) of 1.04 and subsequently head towards TP2 of 1.18. Recommended stop loss for short term traders is 0.80.

Catalysts:
1. Its proposed transfer into the Main Board of KLSE with implications for potential fund managers investment and it also implicitly indicates the improving fundamentals of the company over the years.
2. Its education venture via CUCMS which is one of its key driver of future growth.