Top Picks from an Investment House

An investment house has issued a buy recommendation to a list of selected stocks based on fundamental analysis such as yield, P/E ratio, NTA, current business etc etc. Amongst the stocks listed, I will try to look at four of them from the angle of technical charting.

UEM Land is one of my favorite stocks. Based on the chart as shown below, it may not be advisable to move in at the current level of around 1.42. Since it has formed a 'head and shoulders' pattern, it is likely that it will drop to 0.82 or lower.

In fact the Bursa Malaysia Property Index has formed a 'head and shoulders' reversal pattern, property stocks are expected to move lower until the index reaches 580 or lower.


Tebrau as shown above is a stock that usually moved in tandem with UEM Land as both their lands are located within the Iskandar Development Region. O.55 can be a good entry point for Tebrau.

For IOI, it appears that a triple tops pattern is being formed, once the lower trendline is broken it can go below 4.30. A likely support is 4.10.

Same as the property index, the plantation index has formed a 'head and shoulders' reversal pattern, more drops are expected for plantation stocks.

MRCB may go for 'head and shoulders' formation, can wait.

Similarly Gamuda may form 'head and shoulders' too, it is advisable to wait for a while. It may even form a bigger 'head and shoulders' pattern with 2.20 as its neckline.

I personally do not expect Dow and the rest of the indices such as FTSE, Hang Seng, STI ....... including KLCI to change from down trend to up trend in the near future especially with the formation of 'head and shoulders'. Whatever rebound is likely to be technical in nature to the down trend, just hold on to the cash and wait.