Playing Safe Again…..

With current heightened geopolitical risks, investors appear to be staying alternately risk-on and risk-off, leading to a directionless trend. Nevertheless, greater volatility will lead to greater opportunities in short term swing trading space. Investors should place greater emphasis on proper risk management in order to play safe in this rather volatile  market environment.

Fundamental Screening

Using screening tool based on fundamental criteria, one of the screened companies is  Malaysian-listed Luxchem Corporation Berhad, a supplier of industrial chemicals:

Screening Filter.png

Technical Perspective & Risk Management

TA_luxchem.jpeg

Current trend appears to be on an uptrend, with a possible pullback trading opportunity. Assuming an entry price at RM1.62 and a stop loss at RM1.50 (i.e risk of RM0.12 or 1R), it may be possible to position a swing trade based on a target price of RM1.80 (this will translate into a potential return of 1.5x of potential risk). RM1.80 appears to be the highest point in the last 6 months for Luxchem.

Prospects & Risks

Lux_prospect.png

Investors need to consider the uncertainties relating to volatility in Ringgit as well as crude oil. Nevertheless, Management remains positive with the Company’s prospects.

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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