– CN Asia Corporation (CNAC MK; RM0.62, BUY) – Uptrend is still intact.
– Ingress Corporation (INGC MK; RM0.82, BUY) – Broke out of the pennant’s upper trend line.
– Time Engineering (TIM MK; RM0.485, SELL) – Sell into strength.
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CN Asia Corporation (CNAC MK; RM0.62) – BUY
FY10P/E: N/A, P/BV: 0.8x
• The stock pierced through the triangle resistance in end-Oct to form a shortterm uptrend channel. This should pave way for more upside ahead. Resistance is seen at RM0.66 and RM0.70 next.
• MACD is poised for a positive crossover, suggesting that this upleg is still intact. Meanwhile, its RSI is also above the 50-mark.
• Aggressive traders may start to buy now but a stop below its support trend line at RM0.57 is a must. This is crucial as the next support is weaker at RM0.55 and RM0.505.
CN Asia Corporation Berhad and its subsidiaries manufacture and trade tanks, dish ends, pressure vessels, and pipes for the petroleum industry. The Company also has operations in specialized engineering and fabrication works and also provides repairing and leasing services of transportable containers for hazardous chemicals.
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Ingress Corporation (INGC MK; RM0.82) – BUY
FY10P/E: N/A, P/BV: 0.5x
• After the strong run-up in mid Sept, Ingress has been holding firm above the RM0.61 support trend line. Yesterday, it also broke out of the pennant’s upper trend line, suggesting that this uptrend is still intact
• The technical indicators are showing some improving signs. MACD histogram bar is about to turn positive while its RSI has also hooked upward.
• As pennants are short-term continuation patterns, we think there is still a chance for it to re-test the previous high of RM0.85 and RM0.88 thereafter. However, always keep stop tight near RM0.75 in case a deeper correction takes place.
Ingress Corporation Berhad is an investment holding company. Through its subsidiaries, it manufactures roll-formed plastic moldings and weather strips, automotive door assemblies and other automotive components. Ingress also provides automatic tank cleaning services and engineering services for power, utility, oil, gas and computer aided design industries.
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Time Engineering (TIM MK; RM0.485) – SELL
FY10P/E: N/A, P/BV: 2.8x
• The stock hit a new 52-week high of RM0.59 on 5th Nov. Since then, selling pressure began to set in. It appears that Time could still dwindle in the nearterm, with immediate support seen at RM0.445, followed by RM0.385 next.
• Indicators are showing signs of weariness. The rising MACD signal line has reversed while its RSI has also hooked downward from the overbought zone. Once the MACD confirms its dead cross, a deeper correction may be underway.
• Any bounce towards the RM0.525 resistance is an opportunity to take profit as we have yet to see any sign of recovery. Sell into strength.
TIME Engineering Berhad is an investment holding company. Through its subsidiaries, the company constructs and operates an independent open cycle gas-fired power station, supplies and sells electricity, and manufactures electrical switchgears. TIME also develops, manages, and provides business to business e-commerce and computerized transaction facilitation services.
