Weekly Technical Highlights (Week 29/04/19)

Profile stock list:

Possible bearish: (Next week)
1. Gadang
2. Gkent
3. Harta
4. Pavreit
5. Penta

Possible bullish: (Next week)
1. CIMB
2. Homeritz
3. Maybank
4. Pohuat

Possible Sideway: (Next week)
1. Annjoo
2. EWINT
3. IGBreit
4. JAG
5. L&G
6. VS
7. YOCB

The coming month of May is the FY 19 Q1 reporting season. Market will trade cautiously. Hence, most stocks will trade side way. Any unexpected result released will change the market sentiment on respective stocks.

1. Annjoo (Sideway)

The closing price has managed to stay at the mid point (RM1.78). Trade volume has reduced. Annjoo expected to rally next week with the strong buying pressure shown on Friday to meet the resistance line.
Support line: RM 1.78
Resistance line: RM 1.86 

2. CIMB (Minor Bullish)

PT Bank CIMB Niaga Tbk’s (CIMB Niaga) net profit grew 7.6% year-on-year (y-o-y) to 944 billion rupiah (RM274.9mil) for the first quarter ended March 31, 2019, on higher non-interest income (NOII) and improvement in credit charges.
CIMB has closed above 30MA line while 9 and 26 MA lines have made a positive crossing. It is expected that the price should maintain above 30 MA line as the latest support line. But 30 MA direction is still moving downward. Therefore, expecting CIMB stock price will remain the same trend with the support line until the Q1 financial report be released.
Although both Thai and Indonesia businesses are doing well, those contributions to the group is just minor. Hence, the slow down in Malaysia economy will bring some negative impacts to its FY19 performance.

3. EWINT (Sideway)

Same as last week comment.

4. Gadang (Bearish)

This week after the latest quarter report has announced, I have cut my holding quantity by half, the reason i sell it as below:
The latest Q3 FY19 reported that:
1. Year-on-year (y-o-y), despite 9MFY19 revenue climbing by 22.0% to RM503 million, net profit was 34.8% lower at RM46.9 million, dragged mainly by normalisation of construction operating margin from 25.6% to 11.6%, and lower contribution from Capital City project, which resulted in the property operating margin deteriorating from 32% to 22.4%.
2. Quarter-on-quarter (q-o-q), 3QFY19 profit before tax was little changed at RM22.4 million (-0.3%). However, the quarterly net profit weakened by 21.9% to RM13.3 million, mainly due to higher taxation as the effective tax rate surged from 24.6% a quarter ago to 39.7%.

With the rising of material and labor cost and also foreign currency, it will further erode the profit for coming financial year.
Hence, I believe Gadang will turn into bearish in the following week to meet the support line at RM 0.79.

5. Gkent (Bearish)

Gkent has completed with the fifth wave and now begin to move into correction. The support line is at the beginning point of the wave 4 which is at RM 1.22. Price falls below the support line, uptrend will end and bearish trend will start.
Therefore, it is crucial to monitor the price movement when touches the support line.

 6. Harta (Bearish)

In this week, Harta price has managed to breakout from the ascending triangle pattern and touched the major downtrend resistance line. But it seems that the price has been pushed up by short term traders, many have took profit when the price met the resistance line causing the chart pattern to create an evening star signal.
The second wave of sell down might be due to the selling pressure from technical traders which sold based on the chart signal.
Trade volume has reduced same goes to the selling pressure. I am looking for the highest low point to be created and then the price rebound. It will be a strong signal that the price is now in the beginning of the bullish trend.
Hence, in short term, price is still moving in bearish trend until the value traders start to collect at low points then the price will rally again.

7.  Homeritz (Bullish)

Homeritz has announced a bonus issue of 1 Bonus Warrant for every 4 existing ordinary shares.

With the exercise price at RM 0.54. The price is very attractive as it is 15% lower than the current closing price. Moreover, it is even lower than 52 weeks lowest price. Well, it is definitely a good deal for traders to accumulate shares right now to entitle for the warrant.
Therefore, I believe the price will rally. Somemore, quarter report release date is just around the corner. With the strong USD/RM recorded in this quarter, I reckon that the result will be favored by the gain in foreign currency. 

8. IGBreit (Sideway)

Same as last week comment.
After hitting the 52 weeks high, the price has been retreated and stay in side way. The price is still moving in uptrend pattern resistance and support lines at RM 1.90 and RM 1.80 respectively. The short term bullish is still effective as the price stays above 9 MA line.

9. JAG (Sideway)

Daily trade volumes are less. Price moves within the range of RM 0.055 to RM 0.045. Side way pattern.

10. L&G (Sideway)

L&G has the same trend pattern as JAG. As mentioned earlier, the volume reduced. Hence, no sign of momentum. Stock traded in the range of RM 0.16 to RM 0.15. Both companies require catalysts to stimulate the uptrend.

11. Maybank (Bullish)

Business news this week:
1. Maybank demands US$418m from Hyflux within seven days for loans, Hyflux Seeks Cash Injection From Middle East Investor
https://www.theedgemarkets.com/article/maybank-demands-us418m-hyflux-within-seven-days-loans
2. New white knight to infuse S$400 million into Hyflux in the offing as CEO Olivia Lum offers to draw a S$1 yearly salary
theindependent.sg/new-white-knight-to-infuse-s400-million-into-hyflux-in-the-offing-as-ceo-olivia-lum-offers-to-draw-a-s1-yearly-salary/
The price has been affected by the Hyflux debt news. The latest news mentioned that Middle East investor has pumped in fund into Hyflux. Hence, it is a good news to Maybank to secure the loan that stood about S$602.4mil.
Looking forward for the price to break above RM 9.22 resistance point.

12. Pavreit (Bearish)

Pavreit has reached the support line at RM 1.80. It is crucial where if the price rebound next week, the stock is still moving in side way pattern, it will rise again to meet the resistance line. But I give a bearish call for Pavreit as the selling pressure was quite high for last three trading days, CCI has moved into negative range, in short term the price will break below support line and continue with the downtrend.

13. Penta (Bearish)

The price believes to have finish moving in its fifth motive wave. The first correction wave has initiated. It has been a long bullish trend, therefore, if the price cannot return back and stay above RM 4.23, the bullish trend has ended. It will be a major bearish trend coming soon.
Also, the recent reporting from Vitrox have affected the market sentiment. It has shown a sign of slow down in technology sectors.

14. Pohuat (Bullish)

A strong upward momentum has created in this week. It is expected to continue the trend in the following week to meet the resistance line at RM 1.56. The only thing that threaten the uptrend is the trade volume. If the volume increases next week, the price can easily breakout the resistance line.
Hence, the volume should closely monitor to confirm the breakout or retrace action.

15. VS (Sideway)

VS is expected to trade in side way pattern.The volume reduced. Hence, no sign of momentum. Stock will be traded in the range of RM 1.09 to RM 1.17.

16. YOCB (Sideway)

YOCB would move in sideway next week as the trading volume reduces. The stock price cannot move up as no news to catalyze it. We will have to wait until the next quarter report to announce.
Expecting stock price to remain at RM 1.20 for the following week.