I posted AEON chart on 23 December 2010, suggesting that it is about to have short term weakness . True enough, on 24 December there was a spike down from the previous close of 6.24 to 5.82 with a small volume.. It closed at 6.10 for a 19 sen loss which is equivalent to 2.9% decrease. I think that the correction of AEON is not over yet and those who wish to invest in AEON should wait for a while longer.
For those who have invested at lower level should sell on strength as you have a good chance to buy back lower.
As usual, if you use what is written above to buy or sell the risks and rewadrs are entirely yours as only the opinion is mine. Best of luck from me.
AEON is at the top of an uptrend channel.
My guess is to take profit now and buy back later.
There is a bearish divergence, which is a confirmation that it has a short term weakness.
The chart above is from Chartnexus taken on 2nd November 2010
The counter under review is AEON.
Malaysian Stock Market has done well this year with FBMKLCI overshooting 1500 level. With this high level it is getting more difficult to trade profitably as the risk factor gets bigger.. .
I have a look at AEON today and found that it started to trend up from 27th August 2010 starting a around 5.10 level. It went on to form a short-term double-top on 1st October 2010 and 6th October 2010 at 6.10. On 7th October 2010 a was big sell down, probably by a big investor. Since then it goes downtrend.
Checking with Fibonacci retracement at 50% the price is at 5.56. It has since pierced through and currently trading around 5.50. The next Fibonacci retracenment of 38.2% is at 5.43.
With this analysis I believe that it is now at bottom building stage. It may be a profitable move to accumulate at this level or lower and hopefully that it turn in a profit on selling at a higher level in one or two months from now.
This is my personal view and if you trade using my view I wish you best of luck.
AEON chart as at 27/1/2001. There was a very good opportunity for buying when a bullish divergence occured Febuary 2009. Currently it is trading within a channel. If you have the stock, it will be an opportunity to sell off when it reaches the upper channel or when RSI >70.
Just my suggestion.
