Time flies. And apparently, so does the price of Aeon Credit. When I wrote about this stock eight months ago in Issue 53 of this magazine, it closed trading at 5.56 on 15 November 2011. At the close of 16 July yesterday, price changed hands at 11.26. Amazing is the way to put it and obviously the market likes what management is doing for business.
Published in Issue 53, SharesInvestment Malaysia Edition
There a few things to be said about the Aeon Credit then and now. Back then, clearly uptrend with no visible reversal pattern. Within normal circumstances, price is expected to continue its rally.
Now? Price floats almost weightlessly along the 10-day moving average in red. It could not even retrace enough to meet the 50-day (blue line). No reversal pattern is visible this time. Momentum is strong.
Some effort should be made to monitor trading volume. At tops, spikes in volume could coincide with exit by investors. Such a sign need not spell immediate change in trend but more caution is necessary if other phenomenon associated with reversals show up with greater frequency.
Aeon Credit powers up effortlessly
Soh Tiong Hum is a regular contributor to SharesInv.com and the Malaysian Edition of 股事资讯. Follow him with Twitter @sohtionghum
Soh Tiong Hum wears multiple hats: father of 3 year old, business owner, webmaster, cook, trader and investor, write and speaker, seo amateur and webmaster.
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