In the previous post, we introduced a new approach to identify immediate support and resistance, in addition to our existing S-Trader Trend Tracker.
Since, we have not given it any name and it would be appropriate to do so now.
We shall named it as S-Trader X.
Daily chart.
On 12 July 2018, S-Trader Trend Tracker showed the immediate resistance level at RM2.316 and S-Trader X at RM2.34.
The confluence of these indicators showed a resistance zone formed between RM2.30 to RM2.34.
13 July 2018, the stock price broke above the immediate resistance zone with high level of volume transacted and resumed a new upward rally until 5 Sept 2018 before price reverses.
Note
:
1) If anyone interested for a free 5 days trial of our scan result, keep a look out for our blog post.
2) S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Its been quite awhile we have not post any blog on this website.
The last few months, we have been developing some new stuffs for our stock analysis.
Daily chart.
11 April 2018 the stock price broke above all the resistance but failed to rally higher and then It pulled back to a low of RM1.68 on 26 April.
On 14 May 2018. this time stock price after successful broke above all resistance and touched a high of RM2.45 on 7 June before the price correct.
For those who had followed our blog are well aware that S-Trader Trend Tracker been used as one approach to identify support/resistance in relation to price movement.
During our "absence" over the last few months, we have been developing new stuffs and we happy to share the critical support/resistance levels identified using a new approach in our chart analysis.
From the above chart, using the new approach, we identified a critical resistance level @ RM1.90/1.91. This level coincides with our current tool S-Trader Trend Tracker which also identified RM1.901 as immediate resistance level on 8 May.
The next trading day, 14 May, the stock price broke this resistance level with high volume transaction of 9,070,000 shares and rallied until 7 June.
This immediate resistance level identified using two different approaches made this level highly critical in our analysis.
Note
:
1) If anyone interested for a free 5 days trial of our scan result, keep a look out for our blog post.
2) S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Daily chart.
Immediate resistance zone is between RM2.44 to RM2.53.
Check out the price action correspond to the current resistance zone back in time around early March 2018.
Since the news on technology sector outlook published by TheStar, the share price had rallied with relatively high volume on two occasions - 10 and 13 July 2018 but failed to break the resistance zone.
Is it waiting for strong catalyst to break the resistance zone ?
Related post, Outlook for technology sector seems promising
Note
: S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
On 10 July 2018. TheStar reported on the outlook of Malaysia's technology sector by AmInvestment Bank Research. The detailed of the news drafted below.
The outlook of Malaysia’s technology sector seems promising in the
second half of 2018 (2H18), with the local semiconductor companies
expected to deliver stronger earnings.
According to AmInvestment Bank Research, which upgraded its stance to "overweight", the domestic technology sector's earnings in 2H18 will be driven by sensors, radio frequency chips and operational efficiencies.
"The key theme of the sector in 2H18 should revolve around connected cars, smart homes and automation.
"This paints a positive outlook for sensor and radio frequency (RF) chip manufacturers, automated equipment manufacturers and companies looking to improve operational efficiencies through automation.
"In the smartphone segment, which sales volume is plateauing in developed markets, sensor and RF content continues to increase," the research house said in a note.
AmInvestment Bank Research added that its "overweight" view on the sector could strengthen further, if the US dollar's outlook changes for the better or the semiconductor companies under its coverage secure new jobs of significance.
Apart from that, a share price correction of about 15% to 20% could also provide upside to the research firm's call.
Key beneficiaries of the sector in 2H18 are Inari Amerton Bhd, Malaysian Pacific Industries Bhd, Unisem (M) Bhd and Globetronics Technology Bhd.
AmInvestment Bank Research pointed out that the prospects of Vitrox Corp Bhd and Pentamaster Corp Bhd are also exciting amid the rising adoption of automation.
Moving forward, Inari Amerton and Malaysian Pacific Industries are AmInvestment Bank Research's top pick for the technology sector.
"Inari Amerton is expected to register robust earnings compounded annual growth rate of 31% from the financial years of 2017 to 2020.
It would be riding on three core pillars namely RF, which benefits from the transition to 5G and rising content per device, laser devices, which are boosted by increasing biometric and augmented reality applications in smartphones as well as LED, which rides on rising demand for high-resolution billboards in shopping malls.
"Meanwhile, Malaysian Pacific Industries is revamping its product portfolio to focus on higher-margin and higher-growth specialised markets.
"Its strong net cash position allows it to look into meaningful mergers and acquisitions," stated the research house.
Key risks for the domestic technology sector included lukewarm demand for end-products owing to weak economic conditions, monotonous content growth in underlying products in the absence of innovation and margin erosion in the face of a weakening US dollar.
Source :
1) www.thestar.com.my
