Wednesday, February 1, 2012


Security Name and Company Profile:
Maxbiz Corporation Berhad, MAXBIZ, 9733


Maxbiz Corporation Bhd is a Malaysia company providing management services to its subsidiaries namely Maxbiz Chemicals Sdn. Bhd., M.K.K. Industries Sdn. Bhd. and Dutamas SME Sdn. Bhd. M.K.K. Industries Sdn Bhd is a textile dyeing commission house located in Batu Pahat in the southern Malaysian state of Johor. Maxbiz Chemicals Sdn Bhd is involved in the trading and supply of chemicals which include knitted fabrics and Carbo Clean.

Technical Analysis:
After distributing the stock from last stocks speculation, the exit of smart money adjust the price to a low price level and the price is consolidate start at May 2011. In 6 month, the price was in a consolidate stage (white area, 6 month is classic consoliadate period) and finally break out recently. Here come the first round bullish and pull back a bit and now the another round is coming with the news:

Maxbiz Corp Bhd want to  to come out of PN17 status and appointed Hong Leong Investment Bank Bhd as the principal adviser of the company for its regularization exercise. Hong Leong Investment will be liaising with Bursa Malaysia Securities Bhd and also reviewing the regularization scheme on the extension of time in relation to the submission of the plan.

Based on the news, the William %R has reflect the market sentiment to stag stocks for second round and now is the best opportunity to entry market in over sold situation.

Williams %R always showing the current closing price in relation to the high and low of the past N period. It was developed by Larry Williams. It able to indicate whether a stock or commodity market is trading near the previous high or the low in recent trading range. This technical analysis oscillator is on a negative scale, from -100 (lowest) up to 0 (highest). Buy-Signalling Williams occur when values below -80 as oversold and Sell-Signalling Williams occur when above -20 as overbought. The time frame can be changed for either more sensitive or smoother results. The shorter period, more sensitive you make it, though, the more false signals you will get.

For candlestick analysis, the hammer pattern formed as today's closing, as always, before scalping stocks price. The hammer is comprised of single candle with small body with a large lower shadow, recognized by Japanese rice traders for investor sentiment operates. It is easily identified in candlestick charts by the hammer shape. Always found at the bottom of a downtrend, this signaling buyer is stepping in and may be the beginning of the reversal as market opens and starts moving down as investor sentiment is still bearish but upward rally of the price starts and buyers regained momentum at the end of the day, the sellers thinking that the decline is over and market recovered. If the next day opens higher price, this proving the sellers have given control back to the buyers, and the reversal is confirmed and new trend will be continued.The signal strangeness is better if supported by huge volume and the longer the lower shadow showing more potential of a reversal occurring.

Buy and sell Strategy:
Buy below @ current price around 0.1
Cut Lose @ 0.07 (previous low)

Target Price @ 0.235 (the historical high resistant)

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