Mamee surpassed its recent high of RM2.30

Mamee has just broken above its recent high of RM2.30. From Chart 1, we can see that Mamee surpassed its horizontal resistance of RM2.20-21 & then the recent high of RM2.30. As at 3.45pm, Mamee is trading at RM2.45.


Chart 1: Mamee's daily chart as at Jan 18, 2010 (Source: Tradesignum)

From the monthly chart (Chart 2) below, we can see Mamee broke above its long-term downtrend line (RR) at RM1.45 in August last year. With the breakout above the recent high of RM2.30, Mamee's next horizontal resistance will be at RM3.00. I feel that Mamee's uptrend from October 2008 until today fits quite nicely into 5 waves according to the Elliot Waves theory. The stock could be in the fifth wave, i.e. the final impulse wave before the uptrend reaches its peak (unless there are wave extensions). The fifth wave is a very tricky wave & often doesn't unravel perfectly. While it may overshoot, it may also drop suddenly & sharply.


Chart 2: Mamee's monthly chart as at Jan 18, 2010 (Source: Tradesignum)

If you have strong nerve, you can consider Mamee, especially if it pulls back to RM2.30. For more on Mamee, go to my earlier post. Mamee had completed a 4-for-5 Bonus Issue in November last year.