Technical Analysis of Heidelberg on 11 March 2017

Technical Analysis of Heidelberg on 11 March 2017

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

This time I will try to find probable areas where the fall might stop!

Before that, let me evaluate previous analysis done on 31 Dec 2016: http://imti77az.blogspot.com/2016/12/technical-analysis-of-heidelberg-on-31.html

Heidelberg did pull back and then went up to 570+ before breaking down – giving minor profit.

Fundamentally, it’s a good company – but probably due to lower than expected! EPS, the chart is breaking down.

It has support at 515, ~491 and ~450 and also a minor support ~ 525 (which is just 5 points below Close of 530 on 9 March 2017).

Record date is 28 March 2017 – for 300% Cash Dividend.

It implies that its price will open Tk 30 less on Wednesday 29 March ’17.

515 implies ~19 PE

491 implies ~18 PE

450 implies ~17 PE

MI Cement and Confidence Cement are currently priced at 19 PE and 17 PE respectively.

If it does not get support near current price level, then ~515 is possible with 490 a worse case scenario. However, I would love to pick it around 450! Day-dreaming!

Better to keep watch to pick it on a reversal candle . . .