Bursa Malaysia Stock Watch

Broker's Call - Friday, 05 February 2010

kltrader
Publish date: Fri, 05 Feb 2010, 11:21 PM
kltrader
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* KYM Holdings (RM1.22, SELL) ? Uptrend is under threat.
* Mithril (RM0.25, SELL) ? Could be its final upleg.
* Linear Corporation (RM0.53, SELL) ? Technical landscape is weak.
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KYM Holdings (RM1.22) ? SELL
FY10P/E: N/A, P/BV: 2.6x

? The recent spike in prices may be coming to an end soon. The black candle was seen yesterday, forming an inside day, suggests that the uptrend could be under threat. Another black bar today would likely confirm that the 2nd February high of RM1.30 is its medium term high.
? Although MACD is still rising, its histograms are losing some pace here. In addition, the RSI has hooked downward again. A consolidation may be required to neutralise the overbought RSI.
? Use any rebound to sell into strength. The RM1.30 level could offer some strong overhead resistance. Even if this level is taken out, next resistance is around RM1.33-RM1.36. Support is weak at RM1.17 and RM1.11.

KYM Holdings is an investment holding company. Through its subsidiaries, the company manufactures and trades corrugated fiber boards, carton boxes, paper bags, and invests in property.
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Mithril (RM0.25) ? SELL
FY10P/E: N/A, P/BV: 0.2x

? Mithril surged to a new 52-week high of RM0.27 during its intraday trading yesterday, yet still ended in the negative territory. This may suggest that the recent ascent could be its final upleg. Broker needs another black candle to confirm that the uptrend has finally come to a temporary end.
? Traders may want to take some profits off the table now. Unless the candles can inch past 0.27, which we think is a low probability, selling pressure may accelerate in days to come. Next supports are weak at RM0.23, RM0.20 and RM0.185.
? MACD is still rising but its RSI has begun to head south. This could be an early warning of more downside ahead.

Linear Corporation is an investment holding company which provides management services. Through its subsidiaries, the company manufactures cooling towers, trades water tanks, provides water treatment services, and installs air-conditioners and control valves.
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Linear Corporation (RM0.53) ? SELL
FY10P/E: N/A, P/BV: 0.5x

? Prices dwindled after a recent rebound. This shows that follow through momentum is still weak. Although there might be some cushion near its 30-day SMA at RM0.49, overall, broker thinks the technical landscape is weak. The declining volume also jived with the bearish outlook.
? If the 30-day SMA gives way, then RM0.425 and RM0.37 (also its 50-day SMA) would be its next targets. Meanwhile, near term gains are likely to be capped at RM0.585-RM0.63. Given the deteriorating outlook, broker believes traders should do well selling into strength.
? Indicators also point to more downside ahead. Both MACD and RSI signal lines continue to fall.

Linear Corporation is an investment holding company which provides management services. Through its subsidiaries, the company manufactures cooling towers, trades water tanks, provides water treatment services, and installs air-conditioners and control valves.
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