SJER Theme - Loss of Interest?

Stocks based on the South Johor Economic Region theme seem to be among the biggest fallers this week. Yesterday Tebrau & UEM World took big tumbles.

Tebrau - took a BIG fall yesterday. There has always been a Descending Triangle (A-B-C) & that generally is a weak pattern with which we must be extra careful. The cutloss for the DT was 0.50 which I have stated many times in this blog. Anyone who has read my blog should have sold once it fell below 0.50 & if you did that yesterday you would only have lost 1-2 sen not the massive 12 sen or 23% drop. Weekly MACD has made a bearish cross down so this is not good for Tebrau. This is a major breakdown but there is support at 0.33, 0.28, 0.23 & a very strong support at 0.20. Actually 0.33 & 0.28 are also strong supports but panic sellers may dump & force prices below these supports.


Mulpha - also took a tumble & has a bearish engulfing pattern at a top. Weekly MACD has been negative for a few weeks. Vol has however been low despite the fall. Still the bearish engulfing candle indicates further falls.


UEM World - should by all accounts hold up quite well as fundamentally it has a lot going for it incl. the award of the 2nd Penang Bridge, huge landbank in Johor & as a major construction Co owned by Khazanah it will definitely benefit from the Govt's construction pump priming in Budget 2007 & also 9th Msia Plan. But technically it is weak, so we may see further falls yet. Two large black candles Mon & Tues, very negative weekly MACD & RSI, falling below the 7,14 & 21-day MAV all show the weak technical picture of UEMW. Only consolation is low volumes during the drops so maybe the institutions are still holding this stock. Support is at 1.25, 1.07 & 0.90. General direction is bearish & down. Don't re-enter until we see positive candlestick pattern.