Tuesday, February 28, 2017

Technical Analysis of Jamuna Oil on 28 Feb 2017

Technical Analysis of Jamuna Oil on 28 Feb 2017

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

All the Oils seem to be on a bullish move. In 2016 market priced them below 10 PE. After bottoming in Q1 ’16, they were on the rise slowly. From the beginning of 2017, it seems all are on a bullish move.

Fundamentals: I have always been a fan of the oils mainly due to their dividends. Annual Profit is steady around Tk 2 Bn from 2012 onward. EPS > 20.
Interestingly, PE still < 9.



2015
2016
1H '17
Profit
2,253
1,959
1,375
EPS
20.48
17.74
12.46
Dividend
100%C
100%C

NOCFPS
67.0
152.0



Now to the Technicals: It is trying to break a major Resistance ~220. Next Supply zones are around 240, 260, 280 and 330. 

The way it is shaping up, a long position could be taken (if already not taken). Hope it will give another buy opportunity ~205 before going up. It is for the risk-takers with Stop Loss at 198.

Best wishes . . . Weekly chart given below:


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