Technical Analysis of Titas Gas on 16 Jan 2017

Technical Analysis of Titas Gas on 16 Jan 2017 (after trading hours)

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

I personally don’t like the current state of the Index – opening new positions are exposing risk. But it seems playing safe might result in “opportunity loss”. Still it is better to be safe than sorry – as the saying goes – the choice is yours!

There are some “confusing” issues with Titas – commission, gas prices, gas reserves, GOB off-loading shares, system loss, etc.

As a Technical Analyst, I do not go into such details. But before investing, one should thoroughly research these and other factors.

Fundamental Analysis: Its “absolute” profit is huge but profit and EPS is in a declining trend from 2014 onward. It gives Cash Dividends – but that is also declining.

	2013	2014	2015	2016
Profit	9,096	10,266	8,881	7,289
EPS	9.20	10.38	8.98	7.37
Dividend	35% C	38% C	15%C	20%C
NOCFPS	7	13	10	11

Current PE is ~ 12. It seems there might be some deep “fundamental” issues.

However, Technical Pattern is taking nice shape (somewhat similar pattern to GPH Ispat).

So now let us look at the Technicals: Weekly chart is somewhat bullish.

Daily Chart: If it can break Resistance at 53, then there is a chance it could go on a Bullish Run (as was predicted for GPH Ispat in http://imti77az.blogspot.com/2016/12/technical-analysis-of-gph-ispat-on-9.html).

Next Supply Zones are 55, 60 and then sort of “empty space” till 75+

It’s for the risk taking Technicians (others have probably taken a lower position earlier). Will it give an opportunity to buy around 51-52? I would set a stop loss of 50.40.

Let us see how much gas the balloon has? Where could it end up? In the sky or back to the ground?