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I was looking at JCY on last weekend and on yesterday, it has formed a nice Ghost Town pattern and drew more of my attention onto it. The hard disk drive manufacturer price has plunged more than 50% few months, and also thanks to the lately delayed market response to labor protests in mid of August.
By looking at JCY fundamentals, it is a solid technology stock with good figures, including healthy track records, high ROE of 20%+ and positive future earnings. Compare to Notion (another technology stock dropping like shit), it is a better pick and the current price is also very attractive to buy.
After the research report released by Terence Wong from CIMB research house on 2 Sept, the stock immediately shot up over 20%. But unfortunately, supply is still more than demand after 2 weeks of that report.
With the spot of Ghost Town pattern, another breakout finally comes today with 16% profit, and it managed to hit the highest stocks' volume of the day. But, perhaps we are worrying whether it'll drop again after a few days? From technical analysis point of view, it is unlikely, as this should be the second bottom. Double bottoms should formed a solid support to JCY, with the high volume support. It's similar to the head and shoulders pattern it suffered 6 months ago.
Perhaps JCY is just like my favorite stocks, HARTA and SUPERMX. With the backing of fundamental and technical analysis, adding Terence Wong's support, I'm confident with JCY that it will continue to shoot up. My first target price is RM1.21. Let's see.
Note: The post above is just my personal opinion. I'm not held responsible for any of your trading decision. ;)
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