Technically DJI and SP500 having the same pattern to each other. The support trend line with I drawn had been broken down on 22/1/2010. The trend line then became the major resistance for DJI. It had try to break the trend line few times but unsuccessful. It finally broke out last night; at the same time it broke the left shoulder resistance as well. Since it created a higher high and higher low now, it meets the uptrend requirements. So we confirmed that DJI, Nasdaq and SP500 are trending up now. If the trading volume can shoot above 40 days VMA in the next few sessions, we maintain bullish on DJI and it will break above 10729.89 soon. Please refer to the chart of DJI and Nasdaq.
Short-term view on Supermax
Despite the good news of special dividend and bonus issue 1 for 4, the stock price unable to grow further and turn sideway. Technically if the price dips below 6.17 and retreat further to the support level 6.00, the price and the indicator (MACD) will form a bearish divergence signal. If this happen, it will retest the support level 5.85 and 5.75. The MACD rounding top had started and if the MACD line hooks further below the trigger line, the short-term view will be bearish. However at this stage the STC %K and %D still above 70 level but both started to hook down. As long as both STC signals still above 70, the bullish trend had not damage yet.
Counters to consider and monitor
D&O
1. A small technology stock, which surged as high as 0.975 on 12/1/10 from 0.25 on 15/10/09. It then started to correct and the price well supported above 0.665 for 2.5 months. Buying signal started 2 days ago with the price surge 6.85% to 0.785 on Fri.
2. Bollinger band open 93% and MACD hook up across the trigger line, very bullish
3. RSI stays at 71%, bullish biased
4. STC %D=81.82 and %K =95.65, bullish biased
5. Weekly chart is up trend, mid-term bullish
6. Immediate resistance level is 0.79, 0.85
7. Immediate support level is 0.71, 0.665
8. Price supported by improved Q409 report (+474%) and global semiconductor demand. Technology stocks are lagging behind. Nasdaq broke new high also affect the bullish view on the local tech stocks like Unisem, MPI, GUH, Penta, ENG, Gtronics and etc. If Unisem broke new high 2.60, many tech stocks will break recent new high. D&O potentially will break 0.975 as well.
Trading Plan: Start to collect at 0.785 or lower. Aggressive buy above 0.795. Cut loss at below BBMB and 0.665. Hold for mid-term.
ENG
1. Another under value technology stock that has some sign of buying interest on Fri. It was up 3.2% and closed at 1.96.
2. Bollinger band open 1% and MACD started to hook up again- bullish
3. RSI at 74, bullish biased
4. STC %D=68 and %K=80, bullish biased
5. Weekly chart for mid term is uptrend
6. Immediate resistance level is 1.97, 2.02 and 2.04
7. Immediate support level is 1.91 and 1.87
8. Price supported by 17.7 cents EPS (+636%) and dividend 6 cents a share. Other factors same as point no.8 above for tech stock.
Trading Plan: Continue to collect below 1.97, aggressive buy above 2.04. Cut loss below BBMB and 1.84. Hold for mod-term.
LIONFIB
1. Lion Forest is in the consumer sector under Lion Group. It started to trade aggressively on Friday and broke new high and closed at 1.54 (+6.9%). Since the price had up > 12% since Thurs, a mild profit taking will occur that might prevent the price surge higher in short term.
2. Bollinger band open 71% and MACD started to hook up again- bullish
3. RSI at 77.5, bullish biased
4. STC %D=59.37 and %K=95.45, bullish biased
5. Weekly chart for mid term is uptrend, very bullish
6. Immediate resistance level is Friday high 1.55
7. Immediate support level is 1.51 and 1.47
8. Price supported by 23.24 cents EPS, serious under value stock, PE only 2.07.
Trading Plan: Continue to collect below 1.55, aggressive buy above 1.55. Cut loss below 1.45 or below BBMB. Hold for mid-term.
LIONIND
1. Another Lion family in the industrial sector, which involve on steel business under Lion Group. There is a buying interest on Friday and it broke out symmetrical triangle and closed at 1.79 (+3.5%). As this is the 1st day moving up, I predict it will break the resistance 1.80 and retest the recent high 1.84. Volume is below 40 days VMA on Friday. We need to see volume grow on next week.
2. Bollinger band open 27% and MACD hook up a few days, very bullish
3. RSI at 75, bullish biased
4. STC %D=89 and %K=100, very bullish
5. Weekly chart for mid term is uptrend, very bullish
6. Immediate resistance level is 1.80, 1.84
7. Immediate support level is 1.76, 1.71 and the BBMB
8. Price supported by 11.7 cents EPS (+282%) and PE as low as 4.16. This a very good steel stock to invest under Malaysia stimulus plan.
Trading Plan: Continue to collect below 1.80, aggressive buy above 1.84. Cut loss below BBMB or lower. Hold for mid-term.
