Technical Analysis of EHL on 16 Dec 2016

Technical Analysis of EHL on 16 Dec 2016

This is no buy/sell recommendation – just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

Fundamentally, it is a relatively good company in the Real Estate Market (which has been struggling itself for the last few years).

Profit	2012	2013	2014	2015	2016
Annual	206	227	249	211	192
EPS	3.16	3.17	3.09	2.49	2.16
Dividend	10%C + 10%B	10%C + 12.5%B	15%C + 5%B	15%C + 5%B	15%C + 5%B
NOCFPS	-13.0	-12.0	-10.0	3.2	-1.6

Profit and EPS has been declining but I like the part that it has been giving Cash Dividend all these years and decreasing the Bonus amount.

Contrarian Perspective:

It was screaming “Buy” from a Contrarian perspective from 10 to 24 October 2016 (when it broke Support at 34). Historical Low is 31.

When I was suggesting to people that it might be a good long term opportunity – no one listened!

* On a separate note, when I NOW suggest some people to exit some stocks that have risen to a high level, they do not want to sell – its buy, buy time . . .

But I never imagined it would rise so quickly. And now I am to suggest it again around 46 – and now people might be interested!

Now to the Technicals:

• It has risen on High Volume.
• Two waves already complete.
• With a bullish stock market, if it breaks Resistance at 46 (daily chart) and 48 (weekly chart), then next Resistances are at 55, 60, 65.

It is for the Risky Trader – the break out guys. I am not that confident yet!

Stop loss if it goes below 42.

BUT the more important Question is? 

Is the Real Estate Marketing reversing; has it bottomed?