Tuesday, June 16, 2009

Lafarge - Buy On Pullback


Lafarge Malayan Cement broke out of its resistance level RM 4.74 near the end of May 09 and the stock has been gaining ground since then to reach a high of RM 6.50.


As the leader of the Malaysian cement industry and a major player in the Asian export market, this stock should benefit from the stimulus plan that are being implemented by Asian countries.

The ADX is above 30 with +DI above the –DI, indicating a strong trend that is developing.

MACD is also bullish at the moment with the indicator above its signal line.

Analysts are expecting a pullback in the stock market after a spectacular run from March lows. This stock should be a good candidate to buy on pullback. Look to enter near the RM 4.74 level, which is the previous resistance level.

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