Is the selling finally over?

Malaysia’s Employees Provident Fund (“EPF”) has been offloading its position in Kian Joo Can Factory Berhad (“Kian Joo”) ever since the recent termination of the proposed take-over exercise of Kian Joo, as summarised below:

KJCF_Insiders2.png

As shown in the graph below, recent price and volume trends appear to suggest that the overselling has moderated, with a lower trading volume being recorded in the month of June 2016.

KianJoo_6 June 2016.pngIt is also observed that the current closing price has touched above the 10D moving average price of Kian Joo, indicating a potential upward movement. There is a possibility that the 10D MA may cross above the 20D MA. Further, a gradual increasing RSI trend also supports a more stabilising price trend for Kian Joo.

Further positive catalysts (e.g earnings growth) are required to support a strong upward movement for Kian Joo.

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Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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