Salcon Bhd

I was asked to have a look at Salcon technically to see whether it is ready to move up.



Based on the 2-year chart above, it appears that it has completed its major wave (I) & (II) by May 2010. It is possible that it has started its major wave (III) and is about to break its longer term upper resistance line. It is expected to accelerate once it breaks its upper resistance.



From its 6-month chart, since the completion of its major wave (II) in May, it has proceeded to complete its sub-wave (i) & (ii) and mini wave i & ii of sub-wave (iii). Currently it is forming its mini wave iii. It put on a strong candlestick with high volume to close at 70.5 sen today, Thursday, and it has moved above its short-term resistance lines of 68.5 and 69.5 sen. The chart looked bullish.

Salcon principal activities are the provision of engineering services for the design, construction, operation and maintenance of facilities for potable water, sewerage, industrial waste water and palm oil mills. It has operation in Malaysia, Vietnam and Indonesia.