Thursday, April 5, 2012

The Tale of 2 Stocks

Yoma has been on the horizon of many traders and investors since last December, tracking the rise of Myanmar in the international arena. Coupled with the market bull run, Yoma has been enjoying a tremendous surge in its stock prices since December. Is the bull run ending? It does not seem so. 

Technically, there is a breakout today past the all time high in January. This is coupled with a strong buying volume. MACD has been treading up together with RSI. Very healthy rise yet again after taking a short breather over the last 2 months especially February. 
On the weekly, the stock has been increasing in volume clearly and MACD has staged a rebound and is treading upwards again. Although some caution to note is the RSI in overbought region. However, it is still of little concern to traders lately and it has been above 75 almost for the whole quarter of this year.
What run for this stock indeed. And to come.

Tiger, on the other hand has been hit by strong fuel prices that have been hampering its profits. Even after staging a comeback with strong flight on-time performance with renewed operations, this did not pacify most analysts and most have revised Tiger to Sell or Hold. Has it surged beyond its earnings and the market feels that the fundamentals are weak compared to current stock prices?

Technically, Tiger stock prices have risen dramatically in the last 3 months owing to a global equities rebound and some form of relief from its return to the skies in Australia. But it has reached a strong resistance line that clearly traces all the way back to Aug 2010. Never has the stock breached this levels convincingly and now, it seems equally unlikely to do so. Weekly volumes have been decreasing, a sign of waning interest in this stock. MACD histogram has diverged with the MACD signal line, pulling it downwards. RSI is not too indicative, staying around the 50 level.
In huge contrast to Yoma, Tiger seems set to have a reversal of fotunes and continue sinking into its malaise. Into the future, there does not seem to be respite. 

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