SKPETRO (5218) : A Selldown, A Buying Opportunity?

SKPETRO (5218) : A Selldown, A Buying Opportunity?

SKPetro took a sharp drop today on news that Mokhzani Mahathir and Yeow Kheng Chew have both resigned from the board of SapuraKencana Petroleum Bhd, with citing personal reasons (here).

I think the market is overreacting on this news. After all, we know that Mokhzani bought into Yinsoon in 2013 (here) and we have been expecting him to leave SKPetro some days despite his assurance that he would still keep 10%-stake in SKPetro (here).

Looking at the charts below, I believe that the stock should be well-supported at RM2.20-2.40. In fact, Mokhzani bought some shares in SKPetro in early December when the stock was at around RM2.40.


Chart 1: SKPetro's daily chart as at Mar 5, 2015_10.00am (Source: ShareInvestor.com)


Chart 2: SKPetro's weekly chart as at Mar 5, 2015_10.00am (Source: ShareInvestor.com)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, SKPetro.

 http://nexttrade.blogspot.com/2015/03/skpetro-selldown-buying-opportunity.html