Technical Analysis of FEKDIL on 2 Jan 2017

Technical Analysis of FEKDIL on 2 Jan 2017 (before 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 like FEKDIL very much. For last 2 years during Q2, it started moves from around 16.5 to 27+ (around 60% return). This is one of my favorite strategies. You can learn more about it in this article:

http://imti77az.blogspot.com/2016/11/using-simple-technical-analysis-to.html

In mid-November '16, when it bounced from lower 20's, I took my eyes off it - expecting it to return to 16 later. How wrong I was - I did not track it and now it seems on the verge of breaking a Major Resistance.

Now back to FEKDIL Fundamentals: FEKDIL is a good company with EPS ~ 2 in last three years. Last two years, it gave 5% Cash Dividend and 10% Stock Dividend. Currently PE ~ 16 seems quite high compared to other "fundamental" stocks which have relatively lower PE than FEKDIL.

	2014	2015	2016
Profit	242	315	293
EPS	2.09	2.36	2.00
Dividend	5%C + 15%B	5%C + 10%B	5%C + 10%B
NOCFPS	1.7	2.6	0.6

Currently, it is not a growth company although there is an expansion story.

Technicals: In the long-term weekly chart, we see that 27.8 is a Resistance. If FEKDIL can break Resistance at 27.8, then next (minor) Supply Zone is at 35 followed by Strong Supply at 40-45!

It might offer good returns for the break out trader (risk-taker), if one has not positioned earlier.

With supply in the market, it might give an opportunity to buy around 25.5 – but with the overall bullish sentiment, it is difficult to gauge at the moment.

Stop loss would be 24.5 – that is, sell if it goes below 24.5.

Let us see what happens . . .