Update: Kulim, Dialog, Mulpha, UEM World

1) Kulim - has reached a 9-year high at 4.18 supported by rising CPO prices and its high NTA of 10.50. However 4.24 is a fairly strong resistance & stopped its rise on Thurs. RSI is still rising & at 74 is not overbought so there is further upside. Prices are also still quite close to the 10-day MAV line, so there is no massive divergence that may indicate a correction. Candlesticks also do not show a sell signal. Further upside is still possible with next strong resistance at 5.20. FYI, I called a buy on this stock on 21 July together with IJM Plant & Rimbunan Sawit. I still think there is much upside for plantation stocks.


2) Dialog - Its at a crucial point at the base of the long term uptrend channel (blue lines) and also the downtrend line from the peak of 15 May. A fall below the lower channel line at 0.53 will be negative but quite unlikely as this channel has been holding it up since Nov 2005. Volume has been negligible, so a high Volume breakout above 0.56 will be a very positive sign. Support is at 0.50 & resistance at 0.58. If you think the channel will provide support, then this is a trading buy now with immediate upside of 0.60-0.61. A stronger breakout can take it to 0.66.


3) Mulpha - Is at a crucial point staying just above the midterm trendline. A fall below the line is negative but support is at 1.13. Volume lately has been very low, so there are no weak holders & strong holders may have accumulated the shares & are holding on. A Volume breakout above 1.27 will be very bullish. Next resistance is 1.50 then 2.12 & 2.90. MACD & RSI are flat but prices are holding above the 10,21 & 30-day MAV so its still positive. Fundamentally because of its landbank & projects in SJER, I doubt it will see any prolonged fall. A fall to 1.13 will be a buying opportunity. Nothing to do next except wait for its next move.


4)UEM World - despite the award of the 2nd Penang Bridge UEMW actually fell today. The dreaded M'sian "Buy on rumour, Sell on news" curse strikes again. Technically it is at a crucial point in the long symmetrical triangle. A break below 1.60 will be negative with support at 1.50 & stronger support at 1.26. Strong resistance is at 1.72, but a break above 1.72 on strong volume will be very bullish with resistance at 1.82 & strong resistance at 2.10. RSI & MACD are almost flat with a slight downward bias. Nothing you can do here until we see its next move. If you own the stock SELL if the fall below 1.60 is accompanied by high volume BUT this is quite unlikely because the fundamentals are good. A low volume fall below 1.60 will not be too bad with the supports likely to hold at 1.50.