Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Monday, June 28, 2010

Weariness seen in Gamuda share price rally

Written by HLG Research Monday, 28 June 2010 08:51

KUALA LUMPUR: HLG Research said since its Buy on weakness call at RM2.70 on May 26, Gamuda’s share price has already rallied 20% in less than a month to RM3.24 on June 25.

The research house said on Monday, June 28 that it believes the strong performance was mainly due: (1) The MRT proposal; (2) A commendable 3QFY10 results; (3) A surprise 6 sen gross dividend; (4) More positive sector news flow and higher projects roll-out after the 10MP announcement; and (5) Improved risk appetite for CONSTRUCTION [] stocks.

“Indicators show some signs of weariness as momentum and trend indicators are flashing overbought signals whilst the MFI is approaching 100%.

“Our strategy here is to unload on strength, preferably near the RM3.50 zone. Immediate support levels are RM3.10 (61.8% FR from high of RM3.44 and low of RM2.56), RM3.00 (50% FR), RM2.90 (38.2% FR) and RM2.77 (23.6% FR),” it said.

Entitlement Date: 06/08/2010 17:00
Year Ending: 31/07/2010
EX Date: 04/08/2010
Payment Date: 18/08/2010

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