Wednesday, November 30, 2011

Guinness Anchor Bhd, GAB – Technical Analysis


The third and final piece of my 3-part analysis of Guinness Anchor Berhad, which is also likely the most flawed. I’ve just begun my study of technical analysis (TA) and my analysis using TA will morph from time to time as I discover better ways. 

Long Term trend

GAB is trending upwards in the long term.
In this 5-year graph, I can also see that the 2008 global financial crisis didn’t have a severe impact on its stock price.

Simple Moving Average (SMA) & MACD
GAB is above its 20-day, 50-day and 200-day moving averages. Still bullish. But MACD tells a different story. MACD crosses below signal line and is hooking down. 

Support & Resistance
GAB is trading at the resistance of RM11. Immediately support is 10.60. Next level of support is the psychological price of RM10. Breaching this, it may retrace to 9.16

In Summary
At current price of near RM11, GAB is trading at resistance. Further upside is limited as GAB is deemed fully valued at PE of 17.7.

Read Part 1 and Part 2 of GAB Analysis here:

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