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Ntegrator, will it finish dropping and turn up?

Ntegrator has been in downtrend for very long. From weekly chart, it can be seen that the long term downtrend has continued for 1 over years already, even for mid term, the recent sell down since the start of 2014 has continued for 4 month. Will the downtrend continue or start to turn up? It is an unknown question so far but we can find some clue from both technical and fundamental perspective. Let's look at the technical side first. The weekly chart shows that the recent low of 0.038 formed a strong support level and price managed to have some rebound when it tested this level recently. Besides, MACD histogram already formed a very clear bullish divergence pattern, indicating that the sellers are becoming weaker and the downtrend may finish if buyers step in. From daily chart, it can be seen that moving averages has cross up and MACD histogram is above 0 already, another bullish signal. From fundamental perspective, Ntegrator is a catalyst and only release financial statement half yearly. The recent yearly financial statement was released on 21 Feb. It reported a very significant drop in net profit for 1680% (from +250K to -3900K). From common sense, this level of profit decrease should lead to a significant drop of the share price. However, the sell down thereafter was not as severe as expected. If look at the report in even more detail, it shows that the unusual drop of profit comes from two one-off losses in 2 projects which are closed already. In addition, the revenue for 2013 had an increase of 47% improvement. As the one-off losses in projects for 2013 is not likely to repeat in other projects again, the fundamental of the company is likely to improve gradually and support the share price. In conclusion, both the fundamental and technically perspective indicating that the share price has a better change to go up high than drop some more. One may consider start to accumulate this stock at the bottom zone and expect it to start a mid term to long term uptrend.

Weekly chart:

Daily Chart:

Robin Han
Robin Han

Dr. Robin Han, a graduated from NUS with a Ph.D in Department of Chemical and Biomolecular Engineering, has been actively trading in Singapore stock market since 2007. His passion has let Dr. Robin to become a full time trader since 2010. He has extensively share his experience with his fellow investors on trading Singapore stock market using both technical analysis and fundamental analysis.

Dr. Robin is a regular guest speaker for radio 95.8 on financial program. He also has been invited by different companies and societies to conduct educational seminars on stock investments, including Shares Investment, Wealth Directions (Founder: Dennis Ng), Traders Round Table, SIM, Raffles Business International, Online trader's club and Alpha Alliance. He is also contracted by N2N (a listed trading software provider in Malaysia) as their overseas educational speaker in stocks.