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.
May 05, 22 10:24 AM
What is the market doing and what is it likely to do?
Apr 27, 22 09:01 AM
As we enter April, will we continue to move higher or will there be a correction coming?
Apr 13, 22 11:46 PM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Apr 12, 22 09:38 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Apr 12, 22 09:34 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.