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30 April 2012
Technical Analysis: Analyst S.N. Lock says that Can-One's price trend is now poised to move towards its intermediate-term resistance zone (RM2.25-RM2.45)
(CANONE opening stock price today (30.4.2012) was RM 2.19)
Investor sentiment on Bursa Malaysia took a turn for the worse and share prices staged a follow-through technical pullback last week.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) stayed below the 1,580-point support level when it closed at 1,567.80 points on Friday. It hit an intra-week high of 1,592.45 last Monday before slipping to an intra-week low of 1,566.55 on Friday, giving a trading range of 25.90 points.
The benchmark index fell on four of the five trading days last week. It ended at 1,567.80 points on Friday, a weekly loss of 24.05 points, or 1.51 per cent.
Among other indices, the FTSE Bursa Malaysia Small Cap Index lost 224.14 points, or 1.79 per cent, to 12,314.11 while the FTSE Bursa Malaysia ACE Market Index fell 83.38 points, or 1.81 per cent, to 4,535.33.
Abroad, the New York Stock Exchange staged a follow-through rebound. The Dow Jones Industrial Average closed at 13,228.31, up 199.05 points, or 1.48 per cent.
In Hong Kong, the Hang Seng Index closed at 20,741.45 points on Friday, falling 269.19 points, or 1.28 per cent.
In Tokyo, the Nikkei 225 Index dropped 83.38 points, or 1.81 per cent, to 9,520.89 points.
On Bursa Malaysia, Can-One Bhd closed at RM2.19 last Friday, giving a week-on-week gain of 9 sen, or 4.29 per cent.
Can-One is principally an investment holding company and its subsidiaries are involved in the manufacture of metal lithographed cans, plastic jerry cans and the manufacture, packaging and distribution of dairy and non-dairy products.
The following are the readings of some of its technical indicators:
Moving Averages: Can-One's daily price trend had since stayed above all its 10-,20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI stayed above the 50 level. Its technical reading stood at the 69.07 per cent level at the market close last Friday.
While, the FBM KLCI's 30 component stocks unfolded their expected consolidations, selected second liners remained the trading focus, one of them being Can-One.
Chartwise, Can-One's monthly price trend staged an overhead breakout of the neckline of its double-bottom pattern formation.
Its weekly price trend staged a decisive breach of the neckline (see Can-One's weekly price chart B1:B3) of its double-bottom pattern formation last week.
Can-One's daily price trend staged a successful re-test of the support of the neckline (see Can-One's daily price trend C1:C2) of its double-bottom pattern formation last week.
Its daily, weekly and monthly fast MACDs (Moving Average Convergence Divergence indicators) continued to stay above their respective slow MACDs at the market close last Friday.
Its 14-day Relative Strength Index (RSI) stood at the 69.07 per cent level last Friday. Its 14-week and 14-month RSIs were at the 74.50 and 82.17 levels respectively.
Following the technical rebound on its daily and weekly price charts (C1:C2 and B1:B2) on Friday, Can-One's price trend is now poised to move towards its intermediate-term resistance zone (RM2.25-RM2.45).
Update on 5 May 2012 -
Contrary to the technical analysis, CANONE stock price had moved downwards plunging to a low of RM 2.07 or -5.5% on 3 May and closed at RM 2.10 for the week.