Paramount Corporation

Paramount Corporation Berhad (stock code 1724) is
 listed on the main board of Bursa Malaysia Securities Berhad.

It operates in 3 core areas, namely property development &
investment, construction and educational services.

In June 2011, it has gone through a major corporate exercise as follows:

1. bonus 2 for 5
2. subdivision of RM1  par to 2 x RM0.50 after bonus.

A shareholder owning 100 (RM1 par) shares before the exercise will now own 280 shares (RM0.50 par)

There was good trading interest before the exercise and now after the exercise trading interest has take a back seat. With decreasing trading volume its share price has declined to a level worth taking a closer look both from investment objective and trading plan (if any).

Looking at the chart above I see a downtrend channel and it is hitting the upper line

now (31/10/2011).

Two things may happen. The price may rise above the upper line. If this happen, price will rise further. However, if it fails to go above the upper line it may just head down again. If it goes to the support level of 1.54, I may buy some. Watch the price movement closely after that. Should it go lower then I will buy more when it reaches the lower line of the channel. I will then lock up all the shares up for investment to receive dividend.

Just to share my thoughts for Paramount Corporation today. 
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I re-look at Paramount today (4th July 2012) and insert the chart captured from Chartnexus..

 I inserted 3 horizontal lines in the chart with a time span of about 2 years. Horizontal line at 1.475 is a very strong support. Horizontal line at 1.76 is the current resistance. Horizontal line at 2.04 is the resistance over this 2 years period. MACD is about to turn down and RSI is at the overbought region. (RSI > 70). Very likely there is at least a temporary weakness for it to consolidate the recent gain before it moves down or up.