Stocks for short term trading The Long Steel Big 4 – ANNJOO(6556), MASTEEL(5098), SSTEEL(5665), LIONIND(4235)
The recent increasing of volume and price for ANNJOO pull our attention
to the long steel industry. Below are recent published QR from big 4,
and why the price of ANNJOO is still moving toward the all time high? We
think that possible the next QR of long steel industry will be awesome,
with few of the main reasons given below.
1) For region view, the cheap long steel from china is the main problem
for long steel industry in Malaysia. To assist, the government imposed
an import duty on imported steel, which will lead to the increase of
price of long steel and profit margin for the industry in Malaysia.
2) The infrastructure project in Malaysia kicks off in 2017, resulting
the huge demand of steel for the construction projects. The big projects
include the Pan Borneo Highway Sarawak which is about RM29 Billion, the
RM55 Billion project East Coast Rail Link(ECRL) and the Kuala
Lumpur-Singapore High Speed Rail which is Said to be testing Rm70
Billion.
3) For global view, the Global Steel price increasing mainly because of
china steel production cut, and the cutting of supply will further
increase in the future, the effect will be start seen in second half of
the year 2017, expecting the long steel counters will delivering a very
strong QR.
ANNJOO, as a leader, predicting it will break through the all time high
soon. If happened, the other counters in long steel industry most
probably will be following, MASTEEL start to see movement and increase
of volume. SSTEEL, affect by it recent published weak QR, the share
price need time to absorb the selling force, possible to continue it
uptrend soon.
Best Pick (1 is the best), we focus on ANNJOO and MASTEEL, and watch
whether SSTEEL will resume it uptrend as before, will not consider
LIONIND until the uptrend been confirmed.
1. ANNJOO – To testing the all time high soon, leader of steel. 2.
MASTEEL – Uptrend and start moving. 3. SSTEEL – Uptrend but affecting
by the recent published week QR, price gap down and sideway, possible
resume its previous trend later if ANNJOO break the all time high. 4.
LIONIND – Wait for the trend.
note: EMA 25 EMA 50 need to pointing up, and increase in volume.
Technical View
TP = Target Price CL = Cut loss
The price surge on 23 and 24 august 2017 with high volume indicate the
price had move into new region, the breakout is valid and possible
continue to testing the next resistance.
CheckPoint : Rm 3.50
Tp1 : RM 4 Tp2 : Rm 4.5
CL : Rm 3.35
The price start moving with increase of volume, once breakthrough
Rm1.20 with huge volume, it will set to testing the all time high as
well.
CheckPoint : Rm1.20
Tp 1 : Rm1.30 Tp2 : Rm1.40
CL : 1.10
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By Rambo.
DISCLAIMER : Investment involve risk, including possible loss of
principle and other losses. This article and charts are provided for
information only and should not be construed as a solicitation to buy or
sell any of the instruments mentioned herein. The author may have
positions in soe of these instruments. The author shall not be
responsible for any losses or lost profits resulting from investment
decisions based on the use of the information contained herein. If
investment and other professional advice are required, the services of a
licensed professional person should be sought.
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