Technical Analysis of Olympic Industries Ltd on 22 March 2017

Technical Analysis of Olympic Industries Ltd on 22 March 2017

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

I like its Biscuits - so do many people in Bangladesh.

Fundamentally, it is one of the best companies in Bangladesh. It is in a good business sector – Food. With Bangladesh’s growing youth population, future growth prospects are bright.

	2012	2013	2014	2015	2016	Q2 '17
Profit	465	615	868	1,095	1,626	837
EPS	8.91	7.85	7.39	6.90	8.54	4.19
NOCFPS	9.00	10.70	7.50	8.00	11.00
Dividend	10%C	10%C	20%C	30%C	40%C
	50%B	50%B	35%B	20%B	5%B

Another good thing is that it is decreasing Bonus Shares (ensuring EPS growth) and Increasing Cash Dividends. It is also continuously expanding capacity and bringing new products/brands – which should increase profitability and thus, its share price.

Now to the Technicals: It retraced from a peak around 365 before bouncing back from 284. 

Recently it has created a Head And Shoulders pattern - down target estimate is around 284. With Support at 280, I would keep it in my watch list.

Hope to catch the reversal . . . 

Best wishes . . .