Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.
Similar to Nestle, Dutch Lady's share price has been trending higher. This stock is more for investment rather than trading. It has given investors a steady return over the years.
The chart above is the daily chart of Dutch Lady's share price.
The stock corrected from September 2016 to the first quarter of 2017. Despite its lack of volume, we can still see chart patterns develop in this stock. Thus, its always good to use some technical analysis to analyze any stock.
Dutch Lady broke a downtrend line and then it formed a consolidation box which it broke out of. These are characteristics of a stock that is bottoming. It also broke back above the daily 20 MA and 50 MA.
At this moment, the stock is trending higher making higher highs and higher lows. The rising 200 MA points to more gains in this stock. As long as it continues to trend up and stay above the rising 200 MA, I believe that it will break above the old highs to make a new high.
Let us now look at the big picture of this stock. The chart above is the monthly chart of Dutch Lady.
Sometimes you need to look at weekly and monthly charts to appreciate the power of a strong and steady company. While its share price may not be as exciting as hot stocks, it is where real lasting wealth is being build.
As you can see, you can even find ascending triangles or its variations in the monthly chart of Dutch Lady. I have shared with many of you the power of ascending triangles in Malaysian stocks. I showed you how it works in daily charts but do note that they work very well in weekly and monthly charts as well.
Dutch Lady has been a slow and steady winner over the years. It reminds me of the saying "Slow and steady win the race". I'm sure you have heard about the story of the "tortoise and the hare". I believe that Dutch Lady is the tortoise that is laughing at the many hares in the Malaysian stock market right now.
Dutch Lady has gained more than 6 fold since 2009!
Recently, it may also be trying to make another variation of the ascending triangle in the monthly chart. So, pay attention to the old highs for a breakout.
Jul 13, 20 07:44 AM
Here is a technical outlook for the US stock market.
Jul 13, 20 07:44 AM
Here is a technical outlook for the KLCI.
Jun 29, 20 08:04 AM
Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.
Jun 29, 20 08:03 AM
Well, sell in May did not materialize for the S&P 500 but the market continues to chugg higher. What is in store for us this month?
Apr 30, 20 07:49 AM
What is the stock market likely to do from this impact of the Coronavirus? Will it continue to fall or a bottom is near. We will use charts to guide us.