May 12, 2015

Saudee – Technical Analysis

Saudee Group Bhd  Stock Code: 5157    52 Week High: 0.600   52 Week Low: 0.355

Last Price: RM0.56 +0.03 Support Level: RM0.53, RM0.495
Resistance Level: RM0.57, RM0.59, RM0.60, RM0.63, RM0.65, RM0.675, RM0.70, RM0.725, RM0.75, RM0.80  Entry Level: RM0.385 – RM0.395


Technical Analysis
SAUDEE (5157) rebounded from its intra-day low of 0.53 to close higher at 0.56 after hitting the intra-day high of 0.57. Technically, the chart of SAUDEE formed a bullish white candlestick with increasing volume indicating buying interest came into the stock yesterday. It breakouts from the consolidation forming a Saucer pattern breakout.

MACD surged upward and made a golden-cross over the signal-line, and its histogram also extended upward strongly, indicating an increased in momentum to the upside and a buy signal. RSI (14) rose to 72.3 from 65.1, indicating the stock is turning very bullish. Stochastic rose to 73.8 from 65.4, and is staying above the slow stochastic line, indicating the stock is turning stronger after recent consolidation. The medium and long term trend of SAUDEE is up, and the short term trend is also up with the 5-day SMA crossing above the 10-day SMA and both are above the 30-day SMA, and a confirmed breakout above RM0.57 will see an upside target of RM0.59, follow by
RM0.60, RM0.63, RM0.65, RM0.675, RM0.70, RM0.725, RM0.75, and RM0.80.

Since the short term trend is bullish, day traders with shorter time frame perspective may ride on the short term bullishness and buy on breakout level (RM0.57). Those with lower risk appetite should wait at the side-line and buy on the dip.

Price Objective
Short Term – target price at (RM0.59, RM0.60, RM0.63, RM0.65, RM0.675), stop loss (RM0.525)
Mid Term – target price at (RM0.70, RM0.725, RM0.75, RM0.80), stop loss (RM0.49)

by SJ Securities Sdn Bhd

The Company is currently engaged in business of wholesalers and dealers of frozen and fresh foods manufacturer and sale of processed poultry beef products frozen foods and bakery products and manufacturing and trading of vegetarian food products.