Technical Stock To Watch on 1/9/2015 - HEVEA (5095)

Inside the blog as written on 7/8/2015 stated hammer with long shadow was a buy signal but this was not the case where HEVEA continued its downtrend with heavy sell-off. The reason behind was due to the bad sentiment from the market because of few factors that affected the bear sentiment: 1) ringgit value keeps depreciated  2) nation reserve keeps decreases  3) political turmoil  4)  oil price drops  5) worries on China’s economy slowdown, etc.

Due to this reason, a cut or stop loss is a must when trading or speculating comes into place as besides fundamental analysis (FA) and technical analysis (TA), sentiment analysis (SA) should or should I say must take into consideration when making a trade decision as any FA and TA will become secondary important when sentiment drives and overtakes the market.   

Hevea Daily Chart

However, HEVEA was able to stop the bleeding after hitting the low of MYR0.83 as of 12/8/15 and recover the loss gradually.

Refer to the chart above, HEVEA is making higher high since 12/8/15 and once breaks the psychology level of MYR1.00 and retraced back after tested the high of MYR1.01 (the latest resistance). HEVEA is hovering the 50-days Moving Average line (blue solid line) with 1 shooting star and 2 dojis formed since the last 3 trading days before the Merdeka Day indicated there was uncertainty on this counter as investors are waiting for the quarterly report from this company (this is just my point of view).

As announced by HEVEA on 28/8/2015, the company making profit for both QoQ and YoY, with net profit increased 14.78% and 88.71%, respectively. Kindly refer http://www.klse.my/financial/quarterResult/YoY/quarter/5095/30-Jun-2015.jsp for more details.

Currency: Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION 30 Jun 2015

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30 Jun 2015	30 Jun 2014	30 Jun 2015	30 Jun 2014
		$$'000	$$'000	$$'000	$$'000
1	Revenue	111,378	106,903	227,751	211,591
2	Profit/(loss) before tax	16,534	8,966	31,134	16,754
3	Profit/(loss) for the period	16,042	8,501	30,018	15,743
4	Profit/(loss) attributable to ordinary equity holders of the parent	16,042	8,501	30,018	15,743
5	Basic earnings/(loss) per share (Subunit)	15.82	8.99	29.61	16.64
6	Proposed/Declared dividend per share (Subunit)	0.50	0.00	0.50	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	2.9700		2.7200

Source: Bursa Malaysia

If Hevea opens gap up breaking the 2^nd downtrend line and MA50 on Monday (1/9/2015), it might goes up all the way until it testing the MYR1.01 and 3^rd downtrend line resistance. If it would to breaks these 2 resistance, the next resistance to be met will be @ MYR1.13.

Happy Trading!

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