Tuesday, January 17, 2012

SEGi AND WIJAYA

Hi All,

I'm looking at education stocks which have consolidated for a long time.  Education stocks comprise of Help, Masterskill (MEGB), SEGi and so on but i'm only interested with MEGB and SEGi now.

SEG




Chart Orientation

SEGi try to form "Cup and Handle" pattern.  Bollinger Band squeeze and dragon fly doji at bottom.  Cut loss point at 1.76 (correction from chart 1.75), entering price at 1.82, target profit at 1.87 and 1.96. Next chart.

Indicators


From top, 1)  accumulation on top of the hill. Price not move yet,but somebody keep buying.
                 2) momentum on the move.
                 3) stochastic at 57%.
                 4) MACD histogram green and near 0.

Risk and Reward

If enter price at 1.82,

Risk      :     1.82 - 1.76 = 6 sen
Reward :1) 1.87 - 1.82 = 5 sen
               2) 1.96 - 1.82 = 14 sen

My View

SEGi forming strong support base at 1.77, waiting Bollinger Band break out.   Accumulation move very high but price still not move yet, it is what i call divergence. If market against u after u had  enter, cut loss 6 sen is not much, unless u buy in very big  lots. I like SEGi because when it move, u can get more than  10  sen easy. 


WIJAYA

Not much i know about  Wijaya.  But this is the simplest method u can make a decision to buy.  Let see the chart.



Chart Orientation


Every time price drop to 20 MA, price will rebound again.  This repeated many times ie          7 times.  Now  price rebound just above 20MA and seem like a white hammer candlestick. If u want to enter, price at 82 sen and resistance at 85 sen.  Next target should be 88 sen. 

My View

In this case, I dont need other indicators to support my idea.  Price move in uptrend channel (sorry not draw it), rebound at 20 MA and white candlestick.  Other than that,  in early December, Wijaya received approval from its shareholders to buy two companies in Indonesia for US$80 million (RM251.8 million).

The two companies – Wealth Gate Pte Ltd and Suffolk Pte Ltd – have 80,000ha of land in Irian Jaya that have been approved for oil palm plantations and related activities.


Wijaya would first be extracting timber from the forested land, valued at US$1,000 (RM3,147) per hectare, before converting the area into oil palm plantations, Anuar had told Business Times

News



So, first timber, then oil palm plantations, next moneydrop in the both pockets.

Happy Trading!!!

 


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