May 20, 2011

SEG Technical Analysis - For Long Term Buy

Chart wise:
SEG International Bhd (stock code 9792) – RM3.94


click to enlarge above SEG daily chart

Segi’s candles have been tracking the uptrend line formed since January this year, but the candles are on the verge of breaching the line on Wednesday. After its momentum indicators staged a brief uptrend, they have weakened again, thereby pointing to further downsides in the near term.  If the breach of the trend line is confirmed, then the stock is an avoid, but if the candles climb back above the uptrend line support of RM3.95, the trading buy call remains.

The resistances are pegged at RM4.05 and RM4.14, the recent high. The other supports, meanwhile, are at RMRM3.90 and at RM3.46.

by Mercury Securities Sdn Bhd]