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A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company! This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are: 1. Environmental engineering: Provision of nature conservation and environmental improvement services. 2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development. 3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities. 4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy project

Technical Analysis Review: FBMKLCI Review (21/4/2018)

It has been some time since I last blogged about the markets. So far, I have been accurate about the markets. Do check out my previous review of the FBMKLCI

The index staged a breakout on April 19, 2018, to close on a high of 1,895.18; its highest since July 2014 when it closed around 1,890 points. Note that it has been about 4 years since it last closed above 1,890 points. 

What are the probable possibilities?
In my opinion, there are three possibilities: 
1. The market stages a false breakout and then moves lower to 1,810 points.
2. This is a genuine breakout, prices hold above 1,880 points, and continues moving higher.
3. Prices retrace below 1,880 to around 1,860 or 1,835 points; prices then consolidate for some time. 

It should be noted that market momentum was bullish for the past 3 weeks from 8 to April 19 as prices rallied continuously. 

Chart 1: FBMKLCI Chart as of April 20, 2018





Bullish momentum to carry on?
I cannot deny what I see as the chart tells me that bullish momentum can still carry on. Other than that, another bullish sentiment factor is the upcoming General Elections on May 9, 2018. 

Despite the bearish business atmosphere due to global political risks -- Syrian war and the possibilities of a trade war between China and US, the FBMKLCI has been surprisingly bullish.  

Key Support Levels:
S1: 1,880 
S2: 1,860
S3: 1,835
S4: 1,810

Final thoughts
Having an overall picture of the charts gives us an idea of the FBMKLCI's sentiment: Bullish in a bearish environment. 

If prices close below 1,880, investors should be cautious as the possibility of a correction happening is likely. Investors are advised to tread with caution. 

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