UiTM Melaka

Technical Analysis Research

Assignment 1
(No of Words: 2182/2500) UOADEVDUOA DEVELOPMENT BERHAD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Stock 1: Daily charting – Uoadevduoa Development Berhad

Source: Bursa Malaysia, ChartNexus

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2021 Page 1 of 10

Stock 1: Daily charting – Uoadevduoa Development Berhad

What does the indicator says?

Indicator Analysis
For the 6 months period for the best buying and selling signals.

MOVING Based on the chart above, moving average indicator consist of SMA 20 days. Using
AVERAGE the moving average indicator, we can conclude the stock of Uoadevduoa
Development Berhad showed an uptrend direction, but it starts to form a bearish
outlook in the end of June. Early February, there is buy signal point when the price
line crosses the moving average line from below while being heavily supported by
volume. In this situation as a good opportunity to buy if the share price begins to rise
above the MA, as the price should be trending upward (see buy signals). While in
June, there is a sell signal occurs when the price line descends below the moving
average line.

MA In MA Envelope indicator there are two moving averages: an upper moving average
ENVELOPE and a lower moving average. In the middle of the two moving averages is a 20-day
moving average line. As we can see at the chart above, the Uoadevduoa Development
Berhad’s stock, only signalled two points of buy signal throughout the analysis for six
months. Buy signal identified in the of June 2022, when a share price falls to the
lower band of the envelope, this happens. At this point, we can conclude it oversold
condition and the chance of a share price recovery is very high.

MACD MACD indicator consists of two MA signal. The two MAs are typically computed on
an exponential basis, with greater weight placed on recent periods than would be the
case with a single MA. Based on the Uoadevduoa Development Berhad’s chart stock
above, on February 2022 when the MACD crossing above the MACD Signal it
indicated buy signal to traders. While the sell signal has been identified in the of
April 2022. This happens when the MACD crossing below the MACD Signal. To
identified buy and sell signals, MACD Histogram also has been used.

BOLLINGER Bollinger band indicator consists of moving average line between the upper band and
BAND lower band line, lower band acting as support, and upper band acting as resistance.
Buy signal can be identify whenever a price breached the lower Bollinger band. As
we can see at the chart above, there are four points of stock price that crossing with
the lower Bollinger Band. But when the stock price passes the lower band, traders are
advised to hold the stock until the stock price rises again touching the lower band
line, then traders can buy new stocks. While sell signal can be identified when the
price breaks through upper Bollinger band resistance. Based on the chart above, there
are five points of stock crossing with the upper Bollinger band. At these points, it
indicated sell signal to traders. But when the stock price exceeds the upper band,
traders are advised to hold the stock until the stock price drops back to touch the
upper band line, then traders can sell their stock.

RSI Based on the chart above, according to RSI indicator, buy signal was identify in the
end of January. At this point it also known as oversold condition. The stock is seen as
oversold when the RSI is at 30%, making it quite tempting for traders to enter again.
While in the end of March 2022, there is a point of stock that crossing below
overbought line. The stock is deemed overbought, and it is time to sell when it passes
the 70 percent mark. An RSI suggests an investment is ready for a turn if it crosses
over its overbought or undersold zone. The timing will determine the relevance. A
signal of overbought or oversold simply signifies that a counterreaction is overdue or
overdone in terms of likelihood. Although it doesn't imply a buy or sell decision, it
offers the chance to think about liquidation or acquisition.

No of words: 626 words

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UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) CAELYDCAELY HOLDINGS BHD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Stock 2: Daily charting – Caelydcaely Holdings Bhd

Source: Bursa Malaysia, ChartNexus

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2020 Page 3 of 10

Stock 2: Daily charting – Caelydcaely Holdings Bhd
What does the indicator says?

Indicator Analysis
For the 6 months period for the best buying and selling signals.

MOVING Based on the chart above, Caelydcaely Holdings Bhd’s stock showed a up trend
AVERAGE direction from January until mid -May and it started to bearish until the current price.
In the end of January, when the price line crosses the moving average line from
below while being heavily supported by volume, it indicates buy signal. While on
mid-April, the chart showed the price line passes the downward crossing moving
average line. It indicates sell signal to traders.

MA Based on the chart above, envelope technical indicator is formed by two moving
ENVELOPE averages which is an upper moving average and a lower moving average and there is
a moving average line in the middle of upper moving average and a lower moving
average. A share price can be used as a guide for the share price trading range as well
as a buy or sell signal because it tends to stay inside the range from by two moving
averages. When the share price reaches the upper band of the envelope, it gives a sell
signal to traders. As we can see at the chart above, there are five points that cross
with the upper band line (sell signal on this point). Once a sell signal is identified, an
overbought condition can signal and there is a high probability of a stock price
correction. Next, lower moving average. Based on the chart, when the price of stock
drops to the lower band of envelope, this point gives a signal buy to the traders
because at this point the price of stock is the lowest. It also indicating an oversold
situation with a high likelihood of a share price rebound.

MACD The 26-period exponential moving average (EMA) is subtracted from the 12-period
EMA to generate the MACD. The MACD line is the output of the calculation. The
"signal line," a nine-day EMA of the MACD that can be used to trigger buy and sell
signals, is then placed on top of the MACD line. Sell signals can be identified when
the MACD crossing below the MACD Signal. Based on the chart above, there are
two points of sell signal. While buy signal can be identified if the MACD crossing
above the MACD Signal. Based on the stock Caelydcaely Holdings Bhd there are
four buy signal points that have been identified. To determine the point of buy signal
or sell signal, MACD histogram is also used.

BOLLINGER To form a Bollinger bands indicator, there are three lines needed which is upper band
BAND that acts as resistance, lower band that acts as support and also moving average line
between the upper band and lower band line. As we can see on the chart above, there
are seven points that crossing upper band line. When, the price of stock reached the
upper band (price breaks through the top of the Bollinger Band.), it gives sell signal
to traders. Traders also need to hold stocks when price of stock breakout the upper
band line and sell stocks when its reversal to the upper band. Based on chart above,
there are also three points that reached lower band (price drops below the lower
bound Bollinger Band). At these points, it showed a buy signal.

RSI The RSI is frequently placed beneath the price graph of an asset to give technical
traders clues regarding bullish and bearish price momentum. When the RSI is over
70% and below 30%, an asset is typically seen as being oversold and overbought,
respectively. Based on the chart above, in the early 2022 the RSI crosses above
Oversold Line. This indicates buy signal to traders because the stock is seen as
oversold when the RSI is at 30 percent, making it quite tempting for traders to enter
again. While the sell signal has been identified on middle of April 2022, when the
RSI crosses below Overbought Line because the stock is regarded as overbought
when the RSI crosses the 70 percent threshold, then it is time to exit.
No of words: 658 words

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UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) MPIDMALAYSIAN PACIFIC INDUSTRIES
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Stock 3: Support & Resistance

Figure 1: MpidMalaysian Pacific Industries daily chart

Source: Chart Nexus

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2020 Page 5 of 10

UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) MPIDMALAYSIAN PACIFIC INDUSTRIES
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Support & Resistance

Figure 1: MpidMalaysian Pacific Industries daily chart
Support & Resistance: Based on the chart above, the current price of stock of MpidMalaysian
Pacific Industries is at $28.18. The current stock start formed a bearrish market outlook. On 28
February until 7 March 2022, the volume on the chart above shows an increase but the stock price
shows a decrease. This is called negative divergence. When the underlying security makes a new
high but the indicator doesn't, instead making a lower high, there is a negative divergence. A
bearish reversal may occasionally be predicted by a negative divergence in momentum indicators,
which suggests sluggish upward progress. Positive signals aren't always produced by negative
divergences, particularly when there's a strong rise.
MpidMalaysian Pacific Industries was testing the $49.77 level in its latest session which is
resistance level 2. A bullish bias would be enhanced above this point, with a target price of $50.74.
When the price of stock breakout the resistance level 2, then investor should buy more stock at
this point. This called a trading strategy. There is one point that touched with the resistance level
2 line. This shows, sell signal to traders. Also there is one point that cross the resistance level 2,
and at this point called as breakout point. At this breakout point, traders need to hold or buy more
stock.
At a resistance level 1, there is one point that touched the line. This point gives sell signal to
traders. Other than that, there are three points of resistance breakout which is $38.88, $38.01,
and $37.15. At this point, traders advised to hold the stock and after the stock reversal to
resistance level 1, traders should sell the stock. Other than that, at a resistance level there is a
point that touches the resistance line. This indicates a buy signal.
In this case, support may be found at $26.9, where traders can exit upon a breach to avoid the risk
of a further correction. There is a point that touches the support line, this indicates a buy signal to
traders.
No of words: 334 words

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2020 Page 6 of 10

UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) FLBHDDFOCUS LUMBER BERHAD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Stock 4: Trendlines
Figure 1: Flbhddfocus Lumber Berhad daily chart

Source: Chart Nexus

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2020 Page 7 of 10

UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) FLBHDDFOCUS LUMBER BERHAD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Trendlines
Figure 1: Flbhddfocus Lumber Berhad daily chart
Trendlines: Based on the share price performance of the stock as shown in the chart above, it has
been showing an uptrend since reaching bottoms in December 2021. The simplest definition of
the uptrend of the stock in the share price performance is on higher high and higher low.
Uptrend line starts at the bottom of end of December 2021. On the uptrend line on the chart,
there are three points (higher low) that touch on it. So, this shows a buy signal to traders. In the
chart above also showed two points that cross the uptrend line. These points called breakout
points. The breakout points are at $1.343 and $1.368. At breakout point, traders advised to hold
or buy more stock until the stock price rises and touches the uptrend line again. When the stock
price rises and touches the uptrend line again, it indicates traders can buy the stock at this point.
Based on the chart above, there is a down trendline that starts at the top of April 2022 (bearish
market formed). There are three points that touch the down trendline (lower high) at the prices of
$1.52, $1.34 and $1.33. When these points touch on the down trendline, this gives a sell signal to
traders because at this point the stock price is high. This gives a lot of profit to traders if they sell
their stocks. There are also four breakout points on the down trendline. At this breakout point,
traders need to hold their stock until the stock price reversal to the down trendline then traders
can sell their stocks after that.

No of words: 267 words

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UiTM Melaka
Technical Analysis Research
Assignment 1
(No of Words: 2182/2500) MESBDMESB BHD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Stock 5: Classic Price Patterns, Small Price Patterns and Gaps

Figure 1: Mesbdmesb Bhd daily chart

Source: Chart Nexus

UiTM Melaka Retail Research (FIN555 Technical Analysis) 2020 Page 9 of 10

UiTM Melaka
Technical Analysis Research
Assignment 1
MESBDMESB BHD
Technical Analyzer
Siti Hapija Binti Basir, 2020495356
11 June 2022

Classic Price Patterns, Small Price Patterns and Gaps

Figure 1: Mesbdmesb Bhd daily chart
Classic Price Patterns: Based on the chart above, the highest point of the stock price is at $0.56.
While stop-loss of the stock is below $0.475.
The stock formed a double-bottom pattern between 7 January 2022 and 11 January 2022 with a
low of $0.51. After that stock started to form a higher low structure and price of stock keep
increase. Then, there is double bottom pattern between 14 January 2022 and 19 January 2022
with a low of $0.525. This double bottom pattern is a type of double bottom reversal which it is
also known as bullish reversal pattern. This type of pattern is typically accompanied by high volume on
the first bottom, very light volume on the second, and followed very heavy volume on the breakout.

On 17 January 2022 until 20 January 2022, the stock formed a double top pattern with a high
$0.55. Then, the stock started dropped sharply until 25 January 2022. There is also double top
pattern between 8 February and 10 February with a high $0.55.
On March 7 to April 4, 2022, there is a flag pattern. The flag pattern above is very steep. The chart
above shows the stock price trend in bullish condition accompanied by a declining volume trend
that then begins to increase in the middle of the flag pattern until the flag pattern is complete.
When the flag is ready, the price and volume show a downward trend (market bearish).
Based on the chart above, the stock price has formed a Head and Shoulder pattern in end of May.
The head and shoulders pattern is a significant formation for reversals. There is no longer a
support line when a stock price breaks below the neckline. After the second shoulder, a
pessimistic view was created for the stock price.
No of words: 297 words

SUMMARY

No Stock No of Words

1 Stock 1: UOADEVDUOA DEVELOPMENT BERHAD 626

2 Stock 2: CAELYDCAELY HOLDINGS BHD 658

3 Stock 3: MPIDMALAYSIAN PACIFIC INDUSTRIES 334

4 Stock 4: FLBHDDFOCUS LUMBER BERHAD 267

5 Stock 5: MESBDMESB BHD 297

TOTAL WORDS 2,182

OURIGINAL RESULTS 13%

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