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Monday, 16 December 2013

CENSOF HOLDINGS BERHAD (5195)

CENSOF (5195)                                                                                                        HAFIZ RUSLI


Share analysis
Based on the weekly chart above, Censof has been traded in sideways pattern since 2011. However, the good news on the acquisition of TEB and GST implementation lead Censof to a strong rally in October and November 2013. Heavy volume on the upside movement and diminish during pullback indicate

that the uptrend is solid. The most recent pullback nicely stop at 38.2% of Fibonacci retracement level or Rm 0.55. Support level at Rm 0.55 believe to be strong as it been tested more than 3 times. Failure to stay above Rm 0.55 will lead to further downtrend. . I believe 2014-2015 will be a good year for CENSOF due to commencement of GST by government.



Trading strategy
Buy on weakness is advisable to investor. New position can be initiate with the confirmation of bullish candle such as Harami, Engulfing or Hammer. For day trader, purchase can be made upon breakout at Rm 0.65 level. Use volume and other indicator as confirmation before entry. Stop loss will be at Rm 0.645.

Price projection
Short term          -Resistance level Rm 0.65 (Previous high)
                          -Support level Rm 0.55 (Significant support, resistance turn support)

Medium term    -Resistance level Rm 0.77 (Highest peak)

                        -Support level Rm 0.50 (psychological support level)
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3 comments:

  1. ACHIEVEMENT16 December 2013 at 17:13

    can you help to look in to this stock salcon wa short-wa or till end of Dec'13.

    ReplyDelete
    Replies
    1. Stock District Project17 December 2013 at 11:45

      Technically - In bad condition. Based on the daily chart, clearly downtrend. They are still selling this counter. Traded below 7 days moving averages and RSI pointing down hovering around oversold territory Head and shoulder can be noticed on the last 6 months (bearish reversal). Support level at Rm 0.10 will be crucial. failure to stay above Rm 0.10 will lead to further down trend.

      Fundamentally - Based on Inet research, their current outstanding order book stood at Rm330m. Tendering project worth Rm2.2b, water treatment plant in Langat 2 and Pangerang. PE way above industry average.

      Delete
  2. Jan2 March 2014 at 00:00

    Since censof has just broken the support level of 0.55 to lowest 0.48. May i ask what is the next support level?

    ReplyDelete

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