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Straits Times 3,126.14 -8.57 -0.27%
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Yoma Poised To Rise After Trendline Breakout
Trend Spotting | 06 January 2014
Related stocks:
Z59
By: Robin Han
Articles (102) Profile

As mentioned in my previous article, the Straits Times Index (STI) is overbought and is likely to start to pull back and consolidate. On 2 January, the US market showed a long red candle that rang the bell for the STI to start to pull back.

Given that the STI has moved up for almost 10 consecutive days till 2 January, most blue chips are likely to follow the STI to pull back in the next few days and thus may not be ideal option to buy during this period. Recently, some non-blue chips or even penny stocks have become market darlings again. This trend is likely to continue for sometime. If the STI were to experience a pull back, non-blue chips may rise on the contrary.

Yoma Strategic is one such stock to look at if the STI were to pull back. It recorded its all time high of $1.045 in early-June. It fell to a recent low of $0.67 at the end-August (a more than 35 percent tumble), and has been consolidating thereafter.

Recently, it showed some strength – both the Moving Averages and the MACD histogram are exhibiting bullish signal. When the STI suffered a sell down of 100 points in early-December 2013, Yoma managed to hold well and it is another sign of strength. In addition, it breaks above the resistance trendline in the past few days. After a four-month consolidation, the breakout of the downward trendline may trigger a strong upward movement. One may consider buying on weakness during a pull back and expect the stock to rise further.

Daily Chart Of Yoma Strategic Holdings

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

Yoma Strategic Hldgs  0.325 -0.010 -2.99%   
Business: Co operates mainly in Myanmar under several business segments. [FY18 Turnover] Automobile (40.5%), real estate (20.8%), real estate services (18.4%), consumer (12.9%), financial services (6.2%), investments & others (1.2%).

Insight: Feb-19, 3Q19 revenue jumped 12.1% to $27m mainly a... Read More


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