Technical Analysis Of Sendai

Eversendai or Sendai for short is another popular stock in the Malaysian stock market. Let's take a look at its technical picture. I'm just going to look at the technical picture, so you will need to do the fundamental analysis yourself.

Technical Analysis Of Sendai 3 April 2018 Tuesday

Part of the reason why the stock ran up recently is because of the buying interest by Koon Yew Yin. He is quite transparent with his purchases and frequently blogs about it.

When you have buying interest by a famous investor in a country it often generates a lot of interest and some people may follow and buy the stock as well.

Usually stock prices can go up 10-50% when a large investor buys a huge position in a stock. Technical analysis does not apply for large investors as their buying might cause the price trend to change. It is earnings, and potential future earnings that attracts them to buy the stock in the first place.

If I know a semiconductor company that is going to grow its earning 50% per quarter for the next 6 years, I will accumulate and accumulate and accumulate the stock non stop every month for the next 5 years. I don't even need to look at the technicals in this case until the end of the 5th year.

But anyway, our purpose is to look at the stock from a technical point of view so let's have a look at what the chart is doing.

The stock recently broke a daily downtrend line. It has been in a daily downtrend for quite a long time. The fact that it breaks above a downtrend line and breaks above the 20 MA and 50 MA shows us that the stock may be changing trend from downtrend to uptrend.

That is a first good sign.

Of course do remember that the recent surge up is because of buying interest by KYY. The volume that I have circled shows the buying interest by investors. Usually experienced investors are correct as they would have down their homework before putting millions into it.

If the stock can continue to make higher highs and higher lows in the daily chart then the stock will likely to move up and make a nice new daily uptrend.

Let us now look at the monthly chart to see what is happening.

The stock has broken above a monthly downtrend line. You can see how the recent bounce up found support at the trend line. This is another technical concept. Trendlines can be support areas once broken.

It rallied very fast last year but collapsed as it hit resistance. That is normal as the amount of supply from the left needs to be absorbed before the stock can go up once more.

Now that the supply may have been absorbed by the bull run last year, if the daily uptrend materializes the stock just might be able to go back above 1.80. It might take some time though.

The declining volume as it corrected from last year is also another good sign.

Well, that is the TA for this stock. In the end it is up to you whether to invest in this one or not.

  • If you like this article, consider starting the Stock Market Course. It is free and jam packed with great information for newbies.
  • Want to have updates on the financial markets? Join my Telegram Channel. Dstockmarket.com Channel.
  • Help support this page and press the Facebook Like button below. Thanks!

Recent Articles

  1. Technical Analysis Lessons From OKA Corp Stock Chart

    Aug 17, 18 05:07 AM

    In this lesson we will take a look at the technical developments of OKA Corp's stock price and why it moved the way it did. We will also have a look at what might happen to OKA's stock price.

    Read More

  2. Technical Analysis Lessons From BMY Stock Chart

    Aug 16, 18 07:28 AM

    In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.

    Read More

  3. Technical Analysis Lessons From Pentamaster's Stock Chart

    Aug 14, 18 08:19 AM

    In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.

    Read More

  4. Technical Analysis Of KLCI August 13 2018

    Aug 13, 18 05:56 AM

    The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.

    Read More

  5. Technical Analysis Lessons From AAPL's 15 Min Stock Chart

    Aug 13, 18 05:22 AM

    In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.