FIN555 Individual Assignment - Afieqah Binti Abdul Rahman - 2020896978 - BA2424F

FACULTY OF BUSINESS AND MANAGEMENT
INTRODUCTION TO TECHNICAL ANALYSIS (FIN555)
INDIVIDUAL ASSIGNMENT:
TECHNICAL ANALYSIS OF FIVE COUNTERS
PREPARED BY:
NAME AFIEQAH BINTI ABDUL RAHMAN
STUDENT ID 2020896978
FACULTY BUSINESS MANAGEMENT
PROGRAM BUSINESS ADMINISTRATION (HONS.) FINANCE

SEMESTER PART 4
GROUP/ CLASS BA2424F
SUBMITTED TO:
DR MUHAMAD SUKOR JAAFAR
DATE OF SUBMISSION:
19 JUNE 2022
TABLE OF CONTENTS
INTRODUCTION................................................................................................................................. 2
SOUTHERN ACIDS (M) BHD (SAB) ................................................................................................ 4
SAMCHEM HOLDINGS BERHAD (SAMCHEM) ........................................................................ 11
SCICOM (MSC) BHD (SCICOM) .................................................................................................... 18
SENTRAL REIT (SENTRAL) .......................................................................................................... 25
SOUTH MALAYSIA INDUSTRIES BHD (SMI)............................................................................ 32
CONCLUSION ................................................................................................................................... 39
1
INTRODUCTION
This assignment requires me to analyse certain indicators for 5 counters that I have chosen
from and are listed in Bursa Malaysia. There are five indicators that we have to analyse which
are Moving Average (MA), Moving Average Convergence Divergence (MACD), Rate of
Change (ROC), Relative Strength Index (RSI), and Stochastic. Next, the five counters that I
have chosen are Southern Acids (M) Bhd (SAB), SAMCHEM Holdings Bhd (SAMCHEM),
SCICOM (MSC) Bhd, Sentral Reit (SENTRAL), and South Malaysia Industries Bhd (SMI).
All of the indicators that I have to use in order to analyse the movement of stock prices
is important especially for investors to decide on when to buy and sell their stocks in order to
get better returns. The first indicator is Moving Average (MA). To smooth out price data, a
moving average is employed as a technical analysis tool. The method examines a vast number
of data points to produce a series of averages, each of which represents a different time period.
It contributes to a more complete picture of a stock's intrinsic or fundamental worth by
incorporating real-time market fluctuations.
The second indicator used is Moving Average Convergence Divergence (MACD). This
is a trend-following momentum oscillator. Despite the fact that it is an oscillator, it is rarely
employed to detect overbought or oversold positions. On the chart, it appears as two oscillating
lines with no limits. Trading signals are generated when the two lines cross, comparable to a
two-moving-average technique.
Next, the third indicator used is Rate of Change (ROC). The rate of change (ROC) is
computed by dividing the price in the current period by the price N periods ago. It indicates the
speed of an advance or drop over a specified time frame. The greater the significance of the
trend being measured, the longer the time span under consideration. The use of a ROC indicator
can assist explain some of the cyclical movements in markets by providing early notice of a
trend reversal, although the time frame utilised in a ROC calculation only represents one cycle.
Another indicator used is the Relative Strength Index (RSI). Instead of comparing one
asset to another or a stock to a market, it is a momentum indicator, or oscillator, that evaluates
the relative internal strength of a stock or market against itself. The indicator's design seeks to
solve two issues that come up while building a momentum indicator. The issues are irregular
movements and the need for a steady trading zone for comparison.
2
Last but not least, the indicator used in technical analysis is the Stochastic. It is an
indicator aims to quantify the points in a rising trend when closing prices tend to cluster near
the period's lows, and vice versa, as these are the conditions that herald trend reversals. The
percent K line and the percent D line are displayed separately. The percent D line is more
crucial because it offers the most important indications.
3
CHART STOCK ANALYSIS
SOUTHERN ACIDS (M) BHD (SAB)
Figure 1
Figure 1 shows the stocks trading of Southern Acids (M) Bhd. from May 2021 until June 2022.
The duration of the stock shown in the chart above is 1 year and 2 months. The usage of the
crossover rule is to identify the buying and selling signal.
4
Moving Average (MA)
SAB is one of the subjects of my technical analysis. The moving average is the first indicator.
This technical indicator is used by analysts to determine the direction of a trend and to lessen
the impact of unexpected price spikes. Based on the figures above, it shows a cross above
occurred while MA was still proceeding in the direction of the prevailing downtrend. It should
be treated as preliminary warning of a trend reversal and not a confirmation. In general, the
greater the relevance of a crossover signal, the longer the temporal range covered by MA.
Nonetheless, only an MA that can catch the real cycle's movement will give the best balance
of lateness and oversensitivity.
Using the moving average indicator, a buy signal can be spotted on 10 February 2022, with a
closing of RM3.91 and a volume of RM31.0K. This is one of the right time for investors to buy
the stocks. This choice is made based on the intersection between the share price (black) line
and the moving average (red) line.
Next, after 32 days, the selling signal occurred on 4 March 2022. With a volume of RM0.123
million, it closes at RM4.02. This indicates one of the most suitable time for traders to sell their
stocks. The junction of the share price (black) and the moving average (red) line led to this
choice. It will then be on a slightly declining trend.
We will obtain profits by RM0.11 at the end of the moving average. 2.81 percent will be its
percentage of return.
Capital Gain = RM4.02 + 0 – RM3.91
= RM0.11
Percentage of Return = RM4.02 + 0 – RM3.91 x 100%
RM3.91
= 2.81%
5
Moving Average Convergence Divergence (MACD)
Moving Average Convergence Divergence (MACD) is the next indicator. The indicator is
deemed bullish when the MACD line crosses from below to above the signal line. The signal
becomes stronger as it descends below the zero line. Next, the indicator is deemed bearish
when the MACD line crosses from above to below the signal line. The signal becomes stronger
as it rises above the zero line. There is a bullish divergence occurs when price declines or moves
sideways and MACD line moves up. The positive divergence in MACD can take the form of
either a higher low or a straight incline. There is also a bullish centerline crossover occurs when
MACD moves above zero and into positive territory, creating a plot above the equilibrium line.
This is a clear indication that momentum, at least for the short term, has changed from bearish
to bullish.
On 7 October 2021, a bullish MA crossover occurs when MACD line crosses above the signal
line. The signal to buy with MACD close is when MACD is at -0.0134 with a signal of -0.0121.
Then it would close at RM3.81 on a volume of RM0.349 million. Because of the crossover that
happens when the intersection below the signal line is a strong signal, this conclusion was
made. The MACD (blue) line passed over the signal (red) line, forming an intersection.
On 26 October 2021, a bearish MA crossover occurs when MACD line crosses below the signal
line. MACD will close at 0.03 with a signal of 0.031, signalling a sell signal. With a volume of
RM33.9K, it will close at RM3.94. The intersection of the MACD (blue) line with the signal
(red) line hitting the overboard line led to this choice. When the signal line intersects with the
crossing line, a powerful signal is generated.
6
For the Moving Average Convergence Divergence (MACD), we will obtain profits by RM0.13.
The percentage return will be 3.41%.

= RM0.13
RM3.81
= 3.41%
Rate of Change (ROC)
The Rate of Change (ROC) is another indicator utilised in technical analysis of stock prices.
The term ROC is frequently used to describe the concept of momentum. Other indicators were
utilised in conjunction with it. The higher the ROC, the more the security is Overbought, while
the lower the ROC, the more the security is Oversold. Between the months of October 2021
until February 2022, there is a bearish divergence wjile the prices are making a higher high,
ROC formed a lower high. This led to declining prices for about five months.
As can be seen in the graph, there is some price movement where the price falls below the zero
line. Since the ROC has fallen below the zero line, indicating that the market is oversold, there
is a buying signal. On 7 February 2022, the signal to buy with ROC close on is when ROC is
at -2 percent with ROCMA of -0.8 percent. With a volume of RM16.0K, the price will close
by RM3.95. Due to the curve (board) of the contact or above the line with due line ROC, this
decision is made (green).
7
When the ROC closes at 8.4% with a ROCMA of 1.6 percent on February 17, 2021, this is a
sell signal. With a volume of RM0.12 million, it will close at RM4.15. On the peak of the touch
curve or over the line with due line ROC, this decision is taken (green). Other indicators were
also utilised in conjunction with it.
For the Rate of Change (ROC), at the end we will get profits by RM0.20. Its percentage return
will be

= RM0.20
RM3.95
= 5.06%
Relative Strength Index (RSI)
Aside from that, the Relative Strength Index (RSI) is one of the indicators utilised in stock
price technical analysis. Its purpose is to map a stock's current and historical strength or
weakness using closing prices from a recent trading session. Buying on a crossing up through
the 50 level and selling on a crossing down through the 50 level is a simple but efficient method
of interpreting RSI.
When the RSI closes at 25 percent on 10 December 2021, it is a buying signal. With a volume
of RM7.0K, it will close at RM3.81. This decision is being made as the oversold line is being
touched and rebounded below than 30% by RSI.
8
Next, the selling signal can occurred when the price and RSI are overbought. When the RSI
closes at 89.5 percent on December 29, 2021, this is a sell signal as the RSI line passing above
30% which also indicates a bullish signal. With a volume of RM56.6K, it will close at RM3.95.
This decision was made because it broke the overbought line on one line trading during peak
season. The line was touched and retreated by RSI.
For the Relative Strength Index (RSI), we will get profits by RM0.14. Its percentage of return
will be 3.67%.

= RM0.14
RM3.81
= 3.67%
Stochastic
The stochastic is the last indicator I employ for stock price technical analysis. The stochastic
indicator displays a high volatility price throughout the period. As a result of the significant
volatility of the prices, the buy and sell signals will alternate amongst each other. The stochastic
signal to buy is on December 2, 2021, when the stock closes at RM3.80 with a volume of
RM8.0K as it indicates that there is oversold occured and the crossover goes below 20%. This
is when price makes a high, then corrects by dropping down before rising to a new high. At the
same time, percent D reaches a new high, which is followed by another new high. The
9
stochastic (%K) is 7.1%, while the demand (%D) is 5.9%. The stochastic rebounding from the
lower limit line prompted this conclusion. Because it did not touch and rebound the line, the
intersection with stochastic (black) crossed over Demand (blue) is not strong.
The stochastic signal to sell was issued on January 7, 2022, with a close of RM3.99 and a
volume of RM2.9K. It shows that overboard occurred with the line crossover goes above 80%.
This is when price makes a low, then moves upward as it corrects, eventually reaching a lower
low. Percent D makes a low and then a lower low at the same moment. The stochastic (%K) is
90.5%, while the demand (%D) is 82.5%. Because the stochastic is retreating from the upper
limit to the upper limit line, this decision is being taken. Because it hasn't touched and is
receding the line, the intersection with stochastic (black) crossed over Demand (blue) is not
strong. It is recommended for investors to sell their stocks during this period.
For the Relative Strength Index (RSI), we will receive profits by RM0.19. Its percentage of
return will be 5%.

= RM0.19
RM3.80
= 5%
10
SAMCHEM HOLDINGS BERHAD (SAMCHEM)
Figure 2
Figure 2 shows the stocks trading of SAMCHEM Holdings Berhad from May 2021 until June
2022. The duration of the stock shown in the chart above is 1 year and 2 months. The usage of
the crossover rule is to identify the buying and selling signal.
11
Moving Average (MA)
Next, I have chosen to analyse the stock prices of SAMCHEM Holdings Bhd. The moving
average is the first indication. This technical indicator is used by analysts to determine the
direction of a trend and to lessen the impact of unexpected price spikes. Based on the figures
above, it shows a cross above occurred while MA was still proceeding in the direction of the
prevailing downtrend. It should be treated as preliminary warning of a trend reversal and not a
confirmation. In general, the greater the relevance of a crossover signal, the longer the temporal
range covered by MA.
Using the moving average indicator, a buy signal was generated on 21 December 2022, with a
closing of RM0.82 and a volume of RM0.137M. This choice is based on the intersection of the
share price (black) and the moving average (red) lines.
After 24 days, the selling signal occurred on 13 January 2022. With a volume of RM1.385
million, it closes at RM0.88. The junction of the share price (black) and the moving average
(red) line led to this choice. It will then be on a declining trend. Sell short and place a defensive
stop above the recent minor peak if prices rise to or significantly above the moving average.
We will obtain profits by RM0.06 at the end of the moving average. 7.32% percent will be its
= RM0.06
RM0.82
= 7.32%
12
to bullish.
On 14 July 2021, a bullish MA crossover occurs when MACD line crosses above the signal
line. The signal to buy with MACD close is when MACD is at -0.04 with a signal of -0.039.
Then it will close at RM0.705 on a volume of RM1.498 million. Because of the crossover that
On 7 October 2021, a bearish MA crossover occurs when MACD line crosses below the signal
line. MACD will close at 0.029 with a signal of 0.028, signalling a sell signal. With a volume
of RM2.507 million, it will close at RM0.87. The intersection of the MACD (blue) line with
the signal (red) line hitting the overboard line led to this choice. When the signal line intersects
with the crossing line, a powerful signal is generated.
13
For the Moving Average Convergence Divergence (MACD), we will obtain profits by
RM0.165. The percentage return will be 23.40%.

= RM0.165
RM0.705
= 23.40%
The term ROC is frequently used to describe the concept of momentum. The higher the ROC,
the more the security is Overbought, while the lower the ROC, the more the security is
Oversold. Between the months of June 2021 until October 2021, there is a bearish divergence
wjile the prices are making a higher high, ROC formed a lower high.
On 5 August 2021, the signal to buy with ROC close on is when ROC is at -10.3 percent with
ROCMA of -2.3 percent. With a volume of RM2.721 million, the price will close by RM0.65.
Due to the curve (board) of the contact or above the line with due line ROC, this decision is
made (green). Other indicators were utilised in conjunction with it.
When the ROC closes at 14.6 percent with a ROCMA of 0.7 percent on 20 August 2021, this
is a sell signal. With a volume of RM4.17 million, it will close at RM0.745. On the peak of the
touch curve or over the line with due line ROC, this decision is taken (green). Other indicators
were also utilised in conjunction with it.
14
will be 14.62%.

= RM0.095
RM0.65
= 14.62%
weakness using closing prices from a recent trading session.
When the RSI closes at 15.4 percent on 6 December 2021, it is a buy signal. With a volume of
RM1.819 million, it will close at RM0.775. This decision is being taken as the oversold line is
being broken. The line was touched and rebounded by RSI.
When the RSI closes at 86.2 percent on 7 January 2022, this is a sell signal. With a volume of
RM0.927 million, it will close at RM0.925. This decision was made because it broke the
overbought line on one line trading during peak season. The line was touched and retreated by
RSI.
will be 19.35%.
15
= RM0.15
RM0.775
= 19.35%
Stochastic
signal to buy is on 19 January 2022, when the stock closes at RM0.83 with a volume of
RM1.293 million. The stochastic (%K) is 13 percent, while the Demand (%D) is 20.1%. The
stochastic rebounding from the lower limit line prompted this conclusion. Because it did not
touch and rebound the line, the intersection with stochastic (black) crossed over Demand (blue)
is not strong.
The stochastic signal to sell can be seen on 4 February 2022, with a close of RM0.965 and a
volume of RM7.079 million. The stochastic (%K) is 90.9 percent, while the Demand (%D) is
94.2 percent. Because the stochastic is retreating from the upper limit to the upper limit line,
this decision is being taken. Because it hasn't touched and is receding the line, the intersection
with stochastic (black) crossed over Demand (blue) is not strong.
return will be 5%.
16
= RM0.135
RM0.83
= 16.27%
17
SCICOM (MSC) BHD (SCICOM)
Figure 3
Figure 3 shows the stocks trading of SCICOM (MSC) Bhd. from May 2021 until June 2022.
18
Moving Average (MA)
The third counter that I have chosen for my technical analysis is SCICOM (MSC) Bhd. The
moving average is the first indication. This technical indicator is used by analysts to determine
the direction of a trend and to lessen the impact of unexpected price spikes. Based on the figures
confirmation.
Using the moving average indicator, a buy signal was generated on 7 February 2022, with a
closing of RM1.13 and a volume of RM0.509 million. This choice is based on the intersection
of the share price (black) and the moving average (red) lines.
After 31 days, the selling signal occurred on 9 March 2022. With a volume of RM1.177 million,
it closes at RM1.22. The junction of the share price (black) and the moving average (red) line
led to this choice. It will then be on a declining trend. Sell short and place a defensive stop
above the recent minor peak if prices rise to or significantly above the moving average.
= RM0.09
RM1.13
= 7.96%
19
to bullish.
On 23 August 2021, a bullish MA crossover occurs when MACD line crosses above the signal
line. The signal to buy with MACD close is when MACD at -0.0103 with a signal of -0.0099.
Then it would close at RM1.07 on a volume of RM0.189 million. Because of the crossover that
On 13 September 2021, a bearish MA crossover occurs when MACD line crosses below the
signal line. MACD will close at 0.0085 with a signal of 0.0095, signalling a sell signal. With a
volume of RM97.5K, it will close at RM1.10. There was also a dividend of RM0.0150 on the
same date. The intersection of the MACD (blue) line with the signal (red) line hitting the
20
overboard line led to this choice. When the signal line intersects with the crossing line, a
powerful signal is generated.

= RM0.03
RM1.07
= 2.80%
Oversold. Between the months of February 2022 until March 2022, there is a bearish
divergence wjile the prices are making a higher high, ROC formed a lower high.
On 16 March 2022, the signal to buy with ROC close on is when ROC at -12.1 percent with
21
When the ROC closes at 12.3 percent with a ROCMA of 0.4 percent on 29 March 2021, this is
a sell signal. With a volume of RM1.595 million, it will close at RM1.28. On the peak of the
will be 10.34%.

= RM0.12
RM1.16
= 10.34%
When the RSI closes at 25 percent on 13 August 2021, it is a buy signal. With a volume of
When the RSI closes at 75 percent on 7 September 2021, this is a sell signal. With a volume of
22
RSI.
will be 7.55%.

= RM0.08
RM1.06
= 7.55%
Stochastic
signal to buy is on 17 September 2021, when the stock closes at RM1.11 with a volume of
RM0.203 million. The stochastic (%K) is 20%, while the Demand (%D) is 6.7%. The stochastic
rebounding from the lower limit line prompted this conclusion. Because it did not touch and
rebound the line, the intersection with stochastic (black) crossed over Demand (blue) is not
strong.
The stochastic signal to sell was issued on 27 September 2022, with a close of RM1.18 and a
volume of RM1.595 million. The stochastic (%K) is 83.3 percent, while the Demand (%D) is
80.2%. Because the stochastic is retreating from the upper limit to the upper limit line, this
23
decision is being taken. Because it hasn't touched and is receding the line, the intersection with
stochastic (black) crossed over Demand (blue) is not strong.
return will be 6.31%.

= RM0.07
RM1.11
= 6.31%
24
SENTRAL REIT (SENTRAL)
Figure 4
Figure 4 shows the stocks trading of Sentral Reit from May 2021 until June 2022. The duration
of the stock shown in the chart above is 1 year and 2 months. The usage of the crossover rule
is to identify the buying and selling signal.
25
Moving Average (MA)
Next, another counter used for the technical analysis of its stock prices is SENTRAL REIT.
The moving average is the first indicator. This technical indicator is used by analysts to
determine the direction of a trend and to lessen the impact of unexpected price spikes. Based
on the figures above, it shows a cross above occurred while MA was still proceeding in the
direction of the prevailing downtrend. It should be treated as preliminary warning of a trend
reversal and not a confirmation.
Using the moving average indicator, a buy signal can be seen on 24 March 2022, with a closing
of RM0.905 and a volume of 82.7K. This choice is based on the intersection of the share price
(black) and the moving average (red) lines.
After 44 days, the selling signal occurred on 6 May 2022. With a volume of RM0.433 million,
We will obtain profits by RM0.055. at the end of the moving average. 6.08 percent will be its
= RM0.055
Percentage of Return = RM0.96 + 0 –RM0.905 x 100%
RM0.905
= 6.08%
26
to bullish.
On 10 September 2021, a bullish MA crossover occurs when MACD line crosses above the
signal line. The signal to buy with MACD close is when MACD at -0.0066 with a signal of -
0.0067. Then it would close at RM0.87 on a volume of RM0.278 million. Because of the
crossover that happens when the intersection below the signal line is a strong signal, this
conclusion was made. The MACD (blue) line passed over the signal (red) line, forming an
intersection.
On 1 November 2021, a bearish MA crossover occurs when MACD line crosses below the
signal line. MACD will close at 0.0062 with a signal of 0.0058, signalling a sell signal. With a
volume of RM0.253 million, it will close at RM0.89. The intersection of the MACD (blue) line
27
with the signal (red) line hitting the overboard line led to this choice. When the signal line
intersects with the crossing line, a powerful signal is generated.

= RM0.02
RM0.87
= 2.30%
Oversold. Between the months of December 2021 until February 2022, there is a bearish
divergence wjile the prices are making a higher high, ROC formed a lower high.
On 14 July 2022, the signal to buy with ROC close on is when ROC at -3.3 percent with
28
When the ROC closes at 2.9 percent with a ROCMA of 1 percent on 29 July 2021, this is a sell
signal. With a volume of RM0.156 million, it will close at RM0.90. On the peak of the touch
curve or over the line with due line ROC, this decision is taken (green). Other indicators were
also utilised in conjunction with it.
will be 2.86%.

= RM0.025
RM0.875
= 2.86%
When the RSI closes at 25 percent on 24 February 2022, it is a buy signal. With a volume of
When the RSI closes at 92.3 percent on 5 April 2022, this is a sell signal. With a volume of
29
RSI.
will be 6.70%.

= RM0.06
RM0.895
= 6.70%
Stochastic
The stochastic is the last indicator I employ for the stock price technical analysis. The stochastic
signal to buy is on 4 October 2021, when the stock closes at RM0.865 with a volume of
RM1.015 million. The stochastic (%K) is 0%, while the Demand (%D) is 16.7%. The stochastic
strong.
The stochastic signal to sell was issued on 18 October 2022, with a close of RM0.895 and a
volume of RM0.438 million. The stochastic (%K) is 100%, and the Demand (%D) is also
100%. Because the stochastic is retreating from the upper limit to the upper limit line, this
30
decision is being taken. Because it hasn't touched and is receding the line, the intersection with
stochastic (black) crossed over Demand (blue) is not strong.

= RM0.03
RM0.865
= 3.47%
31
SOUTH MALAYSIA INDUSTRIES BHD (SMI)
Figure 5
Figure 5 shows the stocks trading of Southern Acids (M) Bhd. from May 2021 until June 2022.
32
Moving Average (MA)
The last counter that I have chosen to analyse is South Malaysia Industries Bhd. The moving
average is the first indicator. This technical indicator is used by analysts to determine the
direction of a trend and to lessen the impact of unexpected price spikes. Based on the figures
confirmation.
Using the moving average indicator, a buy signal was generated on 18 March 2022, with a
closing of RM0.215 and a volume of RM59.7K. This choice is based on the intersection of the
share price (black) and the moving average (red) lines.
After 82 days, the selling signal occurred on 7 June 2022. With a volume of RM14.41 million,
= RM0.175
RM0.215
= 81.40%
33
to bullish.
On 18 March 2022, a bullish MA crossover occurs when MACD line crosses above the signal
line. The signal to buy with MACD close is when MACD at -0.0057 with a signal of -0.0056.
Then it would close at RM0.215 on a volume of RM59.7K. Because of the crossover that
On 9 May 2022, a bearish MA crossover occurs when MACD line crosses below the signal
line. MACD will close at 0.021 with a signal of 0.022, signalling a sell signal. With a volume
of RM15.26 million, it will close at RM0.33. The intersection of the MACD (blue) line with
the signal (red) line hitting the overboard line led to this choice. When the signal line intersects
with the crossing line, a powerful signal is generated.
34
For the Moving Average Convergence Divergence (MACD), we will obtain profits by
RM0.115. The percentage return will be 53.49%.

= RM0.115
RM0.215
= 53.49%
Oversold. Between the months of March 2022 until June 2022, there is a bearish divergence
while the prices are making a higher high, ROC formed a lower high.
On 11 January 2022, the signal to purchase with ROC close on is when ROC at -24.5 percent
with ROCMA of -18 percent. With a volume of RM0.847 million, the price will close by
RM0.20. Due to the curve (board) of the contact or above the line with due line ROC, this
decision is made (green). Other indicators were utilised in conjunction with it.
When the ROC closes at 28.2 percent with a ROCMA of 10.5 percent on 17 January 2022, this
is a sell signal. With a volume of RM22.9 million, it will close at RM0.25. On the peak of the
35
will be 25%.

= RM0.05
RM0.20
= 25%
When the RSI closes at 21.1 percent on 25 February 2022, it is a buy signal. With a volume of
When the RSI closes at 80 percent on 23 March 2022, this is a sell signal. With a volume of
RSI.
36
will be 15.56%.

= RM0.035
RM0.225
= 15.56%
Stochastic
signal to buy is on 14 September 2021, when the stock closes at RM0.19 with a volume of
RM0.261 million. This is when price makes a high, then corrects by dropping down before
rising to a new high. At the same time, percent D reaches a new high, which is followed by
another new high. The stochastic (%K) is 0%, and the Demand (%D) is also 0%. The stochastic
strong. It is not uncommon for stochastics to attain a value of 0% or 100%. These figures do
not imply that a stock's price has hit a low point (0%) or a high point (100%). It does, however,
imply either extreme weakness (0%) or extreme strength (100%). When a value of 0 percent is
attained, stochastics frequently rises to the 20-25 percent level before falling back to or near 0
percent. A little price rally may occur if the stochastics move up from that area. For 100 percent
readings, the opposite is true.
37
The stochastic signal to sell can be spotted on 13 October 2022, with a close of RM0.21 and a
volume of RM5.751 million. This is when price makes a low, then moves upward as it corrects,
eventually reaching a lower low. Percent D makes a low and then a lower low at the same
moment. The stochastic (%K) is 85.7%, while the Demand (%D) is 80.2%. Because the
stochastic is retreating from the upper limit to the upper limit line, this decision is being taken.
Because it has not touched and is receding the line, the intersection with stochastic (black)
crossed over Demand (blue) is not strong.

= RM0.02
RM0.19
= 10.53%
38
CONCLUSION
To summarize, technical analysis is a trading discipline that analyses statistical trends

acquired from trading activity, such as price movement and volume, to evaluate investments
and uncover trading opportunities and it is important to investors to monitor price trends and
patterns on charts. Fundamental analysis, on the other hand, is concerned with a company's
financials rather than historical price patterns or stock movements.
In technical analysis, indicators serve three purposes. When the momentum is fading, an
indicator can serve as a warning. It could be a sign to keep an eye out for a break in support at
this point. If, on the other hand, a substantial positive deviation develops, it may act as a
warning to keep an eye out for a resistance breakout. Next, other technical analysis tools are
also confirmed using indicators. They can be used to confirm the strength or weakness of a
breakout. Lastly, indicators are often used to forecast future price movements. Because stock
values change frequently, keeping track of them can be difficult. However, this is where the
technical analysis indication comes into play. The data is smoothed down with these technical
analysis indicators, making it easier to comprehend. They aid in the visualisation of a stock's
movements on a chart.
39

FIN555 Individual Assignment - Afieqah Binti Abdul Rahman - 2020896978 - BA2424F

Uploaded by

Copyright:

Available Formats

FIN555 Individual Assignment - Afieqah Binti Abdul Rahman - 2020896978 - BA2424F

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FIN555 Individual Assignment - Afieqah Binti Abdul Rahman - 2020896978 - BA2424F

Uploaded by

Copyright:

Available Formats

FACULTY OF BUSINESS AND MANAGEMENT

INTRODUCTION TO TECHNICAL ANALYSIS (FIN555)

NAME AFIEQAH BINTI ABDUL RAHMAN

FACULTY BUSINESS MANAGEMENT

PROGRAM BUSINESS ADMINISTRATION (HONS.) FINANCE

SOUTHERN ACIDS (M) BHD (SAB)

Capital Gain = RM4.02 + 0 – RM3.91

Capital Gain = RM3.94 + 0 – RM3.81

Rate of Change (ROC)

Capital Gain = RM4.15 + 0 – RM3.95

Relative Strength Index (RSI)

Capital Gain = RM3.95 + 0 – RM3.81

Capital Gain = RM3.99 + 0 – RM3.80

Capital Gain = RM0.88 + 0 – RM0.82

Capital Gain = RM0.87 + 0 – RM0.705

Rate of Change (ROC)

Capital Gain = RM0.745 + 0 – RM0.65

Relative Strength Index (RSI)

Capital Gain = RM0.965 + 0 – RM0.83

Capital Gain = RM1.22 + 0 – RM1.13

Capital Gain = RM1.10 + 0 – RM1.07

Rate of Change (ROC)

Capital Gain = RM1.28 + 0 – RM1.16

Relative Strength Index (RSI)

Capital Gain = RM1.14 + 0 – RM1.06

Capital Gain = RM1.18 + 0 – RM1.11

Capital Gain = RM0.96 + 0 – RM0.905

Capital Gain = RM0.89 + 0 – RM0.87

Rate of Change (ROC)

Capital Gain = RM0.90 + 0 – RM0.875

Relative Strength Index (RSI)

Capital Gain = RM0.955 + 0 – RM0.895

Capital Gain = RM0.895 + 0 – RM0.865

Capital Gain = RM0.39 + 0 – RM0.215

Capital Gain = RM0.33 + 0 – RM0.215

Rate of Change (ROC)

Capital Gain = RM0.25 + 0 – RM0.20

Relative Strength Index (RSI)

Capital Gain = RM0.26 + 0 – RM0.225

Capital Gain = RM0.21 + 0 – RM0.19

To summarize, technical analysis is a trading discipline that analyses statistical trends

You might also like