– Dow Jones Industrial Average – Turning more positive.
– Crude oil futures – Technical rebound likely this week.
– CPO futures – A base above the key SMAs before it would resume its earlier uptrend.
– WCT (WCT MK; RM2.67, BUY) – Based-building formation could be in the making.
– Gamuda (GAM MK; RM3.04, BUY) – Still in a Triangle.
– Key Asic (KEYA MK; RM0.69, SELL) – Tumbled below its support channel.
_______________________________________________________________________
WCT (WCT MK; RM2.67) – BUY
FY09P/E: 13.7x, P/BV: 1.6x
• WCT’s medium-term uptrend remains intact as recent pullback was wellsupported above its 30-day SMA. On the daily chart, it appears that a based-building formation is in the making. We will only turn bearish when the support channel of RM2.36 is taken out.
• Its technical indicators are improving. MACD histogram bars are slowly picking up while RSI is neutral at 60. Immediate support is at RM2.55, followed by RM2.48 and RM2.36.
• Risk takers may start to nibble now as a swing above RM2.73 would confirm this bullish tone. Resistance is seen at RM2.80 and RM3.00. However, as it is still in the early recovery stage, always keep stop tight.
WCT Berhad provides civil engineering, specializing in earthworks, highway construction, and related infrastructure works. The company also operates in property investment and development as well as trades building materials.
_____________________________________________________________________
Gamuda (GAM MK; RM3.04) – BUY
FY10P/E: 18.7x, P/BV: 2.0x
• Gamuda is trapped in a Triangle pattern. A break above RM3.13 or below RM2.95 would determine its longer-term outlook. As it is currently gyrating between the 30- and 50-day SMAs, expect choppy trading ahead.
• Although MACD signal line is still falling at a steep pace, RSI has started to turn upward. Risk adverse investors should wait for the rebound above its 30-day SMA before accumulating.
• For the risk takers, any pullback toward the RM2.95 support trend line would be a good opportunity to accumulate. However, always keeps a stop at below RM2.77. Resistance is seen at RM3.13 and RM3.25.
Gamuda Berhad is an investment holding and civil engineering construction company. Through its subsidiaries, it provides earthwork construction, manufactures and supplies road surfacing materials, and operates quarry and road laying projects. Gamuda also has operation in hiring and rental of plant and machinery, develops properties, and manufactures and sells paper.
_____________________________________________________________________
Key Asic (KEYA MK; RM0.69) – SELL
FY09P/E: N/A, P/BV: 3.2x
• The rally since March may have ended as the stock has tumbled below its support channel. Last Friday’s fall below its 50-day SMA is another bearish sign. Although there could be some intermittent rebound this week, such efforts are likely to be futile.
• Both technical indicators are still pointing south. MACD signal line is still dropping at a sharp pace while RSI edges closer to the oversold territory. Any rebound towards the RM0.73 resistance is an opportunity to sell. It needs to cut above RM0.825 to negate this downtrend.
• Sell into strength as downside risks still prevail. Support is at RM0.65, RM0.585 and RM0.545.
Key Asic Bhd is a fabless provider of ASIC design and manufacturing services for consumer, wireless, and personal electronics applications.
No comments:
Post a Comment