Yinson Technical Analsyis

Yinson is one of the current darlings of the KLSE with a very conservative business model.  It builds and oversees the initial process of shipbuilding and christening of FPSO, a large tanker that functions as an oil platform.  Then it matches the long term lease contracts with loans it will take out based on long term rates. 

They basically say, here is the US giving such good long term rates, lets take advantage and borrow money to build vessels for the oil and gas industry, then enter into long term lease rates, then make money off the spread.  They retain the vessel at the end of the day while gaining income off the spread between the rates they charge and what they borrow.

Their stock price has been on a tear the last few weeks with lots of profits oozing.

The analysis of this chart is relatively simple.

1.  The pullback at q2 in 2014 seems to be a turning point.  The market made a solid test below the consolidation point in q1 then moved higher immediately.  At this point the market is indeed bullish.

2.   Buyers were waiting for a pullback.  The buyers got what they wanted in the begining of Q4, but immediately sold off before breaking the Q4 consolidation's high, no doubt because of the severity of the drop at the end of Q3.

The market may encounter resistance at the consolidation over RM 3 a share as bears did manage to try and sell down just below the high of the Q3 consolidation box.  But a move above the Q3 consolidation will likely be another bullish turning point.  

If the market were to make a high past the Q3 consolidation box,  one of two things can happen, it can rocket higher to its Q3 high or it could pullback and consolidate once again.  At the moment, Yinson might range, but I wouldn't be surprised if it tends towards the bullish side as it's creeping up to RM 3 a share once again.