Disclaimer : This is my personal blog. Author will NOT be responsible for information errors, incompleteness or delays or for any actions taken in reliance on information contained herein. Examples in this blog are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author assume no responsibility for your trading results. There is a high degree of risk in any form of trading and speculation. Trade at your own risk.

Thursday, July 24, 2014

PDZ Finally Coming ?

Yes, a bit slow but the rally in PDZ is finally coming! After 2 1/2 months have passed, the right side of the cup handle pattern seems to be forming at last. Volume is up again signalling market interest in the stock. Earlier the rally stalled as the Efogen buy was delayed to August. It coincide with the announcement that the Efogen deal is nearing to full completion (by mid Aug) that will transform PDZ into an oil & gas outfit. Expect something to happen in month of August.

My first target is 19 cents, the high of the year followed by a shallow correction to form a cup handle before moving up to test the 20 - 25 cents level, being the anticipated secondary target price for PDZ. You can sell at 19 cents or if you want more money, wait for the rally after the cup handle is complete.

(Disclaimer: Targets are only meant to be used as guidelines, and other aspects of technical analysis should also be employed for deciding when to sell.)

Thursday, July 10, 2014

KENANGA - Last of The Stockbrokers To Move Significantly.

IF you are cursing your bad luck for not making some money on those stockbroking counters which flew away like Insas, TA Enterprise, KAF, OSK, fear not, there is one more yet to move significantly - that is K & N Kenanga or simply known as Kenanga.

Some statistics about Kenanga -

NTA - RM1.11
EPS - 0.85 (2013)
PE Ratio - 85x

For 2014
1st Q Net EPS - 0.96 (already exceed whole of 2013!)
EPS for whole 2014  - 3.84 sen *
PE Ratio based on share price 82 sen - 21.3x *

* Estimated

It is the cheapest stockbroking house now. Things look promising for Kenanga as there appear to be a pennies rally this year. The year high is 86 sen not far from today price at 82 sen. It look to be forming a new FLAG pattern with increasing vol. 

Expect this to be broken in the coming days, weeks with a target price of rm0.88 (length of FLAG POLE (83 - 75= +8 sen or +9.7% upside) and my medium-term target price of rm1.00 if the market remains good. Cut loss at 79 sen below the lower FLAG line. Trade at own risk !

Sunday, June 29, 2014

K1 : Only Buy Upon Breakout ?

The post was updated on 3/7/2014.

K1 disappointed many investors who thought the stock could rally after the AGM on June 20th. It is forming a cup-and -handle chart pattern (see chart below)

In a cup-and-handle pattern, the buy point for conservative traders is when the stock price close above the highest point of the right side of cup which was 44.5 cent. Thus the best entry point is 1 bid above this, at 45 cent, with a stop loss at 40 cent the low of the cup handle.
Cup and Handle Pattern

K1 fascinate me because of the slightly deformed cup handle - see chart below - the handle is straight for few days before sloping down unlike a traditional cup handle which is always sloping down (see diagram above). 

What a deformed cup handle means is that the chart pattern could break down, the rally could take longer than normal or the upswing will not be as strong as in a traditional cup handle rally. This is because some of the buyers did not sell their holdings and will probably do so later. Hopefully this will not be the case for K1 stock later. But we will have to see what happens. Trade at your own risk.