On 13 Nov, the company announced their 3rd quarter earning (30 Sept) with strong revenue and net profit to shareholders as compare to the last 2 quarters. The latest quarter result also stronger than quarter results in 2018.
Below shows the quarters earning since 2018.
Despite having a strong quarter result, the stock price failed to move higher than its high of RM0.855 recorded on 4th April this year. Technical analysis will be our main focus to determine the reason why the stock price unable to move higher.
Below is a daily chart with some of our proprietary tools.
Take a close look at the chart and you will notice a confluence of resistance formed by two borders of resistance zones (RC1 and RC2). There are RC1-2 and RC2-1.around the price of RM0.73.
The stock price did broke above the confluence of resistance (RC1-2 and RC2-1) on 14 Nov. Unfortunately, the price unable to hold above it at the end of market trading and closed much lower. Relatively very high volume were transacted on that particular day - Strong Sign of Weakness.
Going forward, the resistance zones (RC1 and RC2) should be noted as one of the critical criteria during analysis.Take note RC1 and RC2 resistance zones are dynamic variable. Source : 1) Metastock 2) I3investor website
Currently, the price upward movement has been constrained by strong resistance. From the chart above, take note the confluence of resistance formed by two different indicators. Resistance zone is between RM3.90 to RM3.99 RC1 at RM3.896 level. Immediate support levels based on S-Trader Trend Tracker at RM3.60 and RM3.70 Break below RM3.70 level will triggers an alert of potential further downward.
Over the last 3 months, we have been working on a new setup. The above chart showed partial of the setup. At times, the setup able to detect possible bull rally in the making which provides traders/investors an early alert to keep close monitoring in the coming days.
If you are interested to discover in detailed the setup, please feel free to Contact Us about our education session. Source : 1) Metastock
Last weekend, 16 Feb, The Star published an article titled "Wegmans aims for Main Market". For more details, click here. In the article, the part which caught my attention is the last few paragraphs. Extracted from the article, as follows. Asked why investors should consider Wegmans shares, Law says the stock holds more value, given the company's growth plans and production capacity expansion. Based on the figures provided by the company, its latest price-to-earnings (PE) ratio is about 12 times. The company expects its PE ratio to improve significantly once its production capacity doubles, which would potentially raise the group's revenue and bottom line. Since its listings last year, the stock has risen by about 21%. Currently, Wegmans' market capitalisation stands at RM172.5mil, based on its closing share price pf 34.5 sen yesterday. In the first nine months of FY18, the furniture maker recorded a net profit of RM6.37mil, against a revenue of RM67.2mil. There are no comparative figures for the proceeding corresponding period.
Several days later, on 20 Feb, TheStar published the company's quarterly earning. For details, click here. Check out the chart attached below, how the share price reacted in relation to the news reported.
Daily chart.
What do you think the share price outcome in the coming days ?
Source : 1) Metastock 2) www.thestar.com.my and TheStar newspaper. Note
: 1) "Power Within Metastock"
2) If you wish to check your favourite stock using S-Trader tools, please feel free to drop us an email via Contact Us.
Since it broke the final S-Trader Trend Tracker resistance level at RM0.2498 on 15 Feb, the price action failed to close successfully within or above the resistance zone formed by RC2-1 (RM0.2711) and RC2-2 (RM0.252) on several occasions.
During
1st half trading session today, the share price successfully penetrated into
the resistance zone with
closing price at RM0.26 before break-time with relatively very high volume traded.
If the price action remains strong at the end of trading day, there is a possibility it may attracts more activities to this counter Daily chart. (Based on 21 Feb lunch break-time closing price)
In the previous posting, we shared some interesting events on this counter. Today, we shall look at the progress. After 2 Feb publication by The Star titled "Green Packet 2.0: Digital transformation taking shape", the share price had moved upward. On 9 Feb another article been published by The Star titled "Stocks in focus", click here for more details.
The following trading day, 11 Feb the share price gap up on market opening. Thereafter, the share price started to lose momentum and slowly pullback until today (lunch break-time). Daily chart. (Based on 18 Feb 2019 break-time closing price)
Is the price rebound going to happen in near future with the current pullback ?
