UMW (4588), 4588 - UMW: Over-stretched
UMW had a fine run after our buy call on Jan 25. The rally was given a boost by the announcement of Sime's proposed split & listing of its plantation & property businesses. For now, UMW - which I rate as a long-term BUY - is pretty stretched. I doubt it can surpass the resistance at the horizontal line at RM6.00-6.05. Its immediate support is at the horizontal line at RM5.80.
Based on strong price run-up, I think UMW could be a good trading SELL at RM5.90-6.00. If you wish to buy for long investment, you should wait for the price to pullback to RM5.50 or below.
Chart: UMW's daily chart as at Jan 27, 2017
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
UMW (4588), 4588 - UMW: Over-stretched
http://nexttrade.blogspot.my/2017/01/umw-over-stretched_31.html
