Technical Analysis of Heidelberg on 31 Dec 2016

Technical Analysis of Heidelberg on 31 Dec 2016

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

It is becoming difficult to find stocks at low price in this Bull market. That is not to say that there are not any such stocks. There are quite a few good fundamental stocks (including MNCs) which are lying low – it is not that the market does not know; it is just that they are not in focus now.

It is similar to the Case of ShaSha Denims – market knew it was undervalued at 34 – still nothing happened for weeks. Then suddenly, it burst out and broke all barriers and touched 78.5, which I think was an over-valuation – but who am I to think – we Technicians follow the market as the market is mostly right.

Fundamental Analysis: It is one of the best Fundamental companies in Bangladesh with good Profits, EPS and gives good Cash Dividends.

	2012	2013	2014	2015	Till Q3 '16
Profit	1,291	1,474	1,180	1,402	1,342
EPS	22.85	26.09	20.88	24.81	23.76
Dividend	50% C	380% C	380% C	300%C
NOCFPS	27	40	30	35

Now to the Technicals:

Out of nowhere, on 29 Dec 2016, Heidelberg created a Bullish Engulfing Candle with Huge Volume. This signals that a bull is likely.

It will most likely retrace a few points down before making an up move. Let’s hope it starts the Rise of the Fundamentals.

I think ideal buy point would have been at 450 – if not, just below 500 (but too late for that now).

Stop loss would be 537.

Let us see what happens . . .