BACHELOR OF BUSINESS ADMINISTRATION (HONS.

) FINANCE

INTRODUCTION TO TECHNICAL ANALYSIS (FIN555)

INDIVIDUAL ASSIGNMENT
TECHNICAL ANALYSIS OF MR D.I.Y. GROUP (M) BERHAD

PREPARED BY:

NAME MATRIX NUMBER

NUR DALILA BINTI RAMLI 2020452598

KBA2424A

LECTURER NAME:
SIR ANUAR BIN WAHAB

SUBMISSION DATE:
30th DECEMBER 2021
 TABLE OF CONTENT

NO. CONTENT PAGE NUMBER

1 Acknowledgement i

2 Background of Company 1

3 Indicator 1: Moving Average (MA) 2

4 Indicator 2: Bollinger-Band 3

5 Indicator 3: Relative Strength Index (RSI) / Rate of Change (ROC) 4

6 Indicator 4: Moving Average Convergence Divergence (MACD) 5

7 Conclusion 6

8 References 7
ACKNOWLEDGMENT

First and foremost, praises and thanks to Allah S.W.T, the Almighty, for His showers of
blessings throughout my research work to complete this assignment successfully.

I would like to express my deep and sincere gratitude to my lecturer, Sir Anuar bin Wahab for
giving me the opportunity to do this assignment and providing in valuable guidance throughout
this work. Your sincerity and motivation have deeply inspired me. It was a great privilege and
honour to work and study under your guidance.

I am thankful and grateful to my parents for their devotion, their understanding, prayers and
continued support in fulfilling this task.

Finally, I am also thankful to all the people who have supported and helping me to complete
this assignment especially my friends, during this disaster leav
BACKGROUND OF COMPANY

MR. D.I.Y. is a home improvement retailer in Malaysia set up in 2005. The organization retails
an assortment of households, electrical items and other hardware and have been devoted to
a difference in living styles of its customers. It also a home-developed company with more
than 750 stores all through Asia-Pacific. The entirety of the stores is overseen
straightforwardly by the organization and they work in collaboration as a mini anchor tenant
with Lotus, Giant Supermarket, AEON and AEON Big.

The vision of MR. D.I.Y. is to be the largest home improvement retailer in Asia Pacific.
While, the mission is to create a globally recognized ASEAN retail brand and to maintain wide
variety, good quality and value of money; holding true of the company motto “Always Low
Prices”. The major goals of MR. D.I.Y are to open an additional 300 new stores across
the Asia-Pacific and expanding their reach to new countries like Singapore and Philippines.

MR. D.I.Y. begun as a homegrown store for equipment with its first outlet along Jalan
Tunku Abdul Rahman in Kuala Lumpur in 2005 and now it has developed into a famous, giant
retailer of low-price product.

1
TECHNICAL ANALYSIS

Moving Average (MA)

Sell

Sell
Sell

Buy Buy
Buy

Buy

Figure 1

Figure 1 shows the trading of MR. D.I.Y. Group stock from January 2021 until December 2021.
The duration of the stock is 1 years. The chart is representing for the indicators 50 days moving
average. The usage of crossover rule is to identify the buying and selling signal.

Based on the Figure 1, there are several buying signal in the chart. As shown in the
chart, from the May until August the graph showed a bearish trend. Thus, the first buying signal
occurred on 29 March 2021 price at RM3.837, 27 May 2021 price at RM3.814, 26 July 2021
price at RM3.434 and 25 October 2021 RM3.665. It shows that the buying signal will
occur where a closing price moving above the moving average. Thus, this will indicate that
the price will having bullish signal. So, traders are able to buy the stock at that time.

Meanwhile, there also have several of selling signal when the price showed a good
starting for the year of 2021. The first selling signal is occurring on 14 April 2021 which price
at RM4.02, 8 June 2021 price at RM3.966 and 19 August 2021 price at RM3.776. It shows the
most suitable time for trader to sell the stock where a closing price moving below the moving
average. This indicates that a bearish signal would happen in the future. So, if a personal
ready in the market, then he or she should sell at this point. If they have intention to buy, itis
not advisable for them to do that.

2
Bollinger-Band

Figure 2

Figure 2 shows a price trend for Mr D.I.Y. Group with the Bollinger-band indicator with the
duration of 1 year which are from January 2021 until December 2021. Thus, it shows that
stock price of Mr D.I.Y. Group less volatility during May 2021 until August 2021. As the price
become less volatility, it is a suitable situation for a trader to enter the market.

As showing in the figure 2 above, the buying signal spotted on the mid of 2021. The
first date spotted on 1 June 2021 at price RM3.878, followed on 9 August with price at
RM3.455. So, there are two buy signals on the year 2021 and it was the lowest price for the
traders to enter the market.

Next, on the early 2021 and end of 2021 there showed an exit market signal for the
traders when the prices keep on touch the upper band. Started with February 2021 till May
2021, the band keep shows a continuously increase where the highest price for the traders to
sell their stocks was on 27 April 2021 at RM4.100. Then, even though the band shows a bit
decreasing at mid of 2021, it also shows a selling signal to the traders whereas the last sell
signal appeared on 30 September 2021 at price RM3.900.

3
Relative Strength Index (RSI) and Rate of Change (ROC)

Figure 3

Figure 3 shows price trend Mr D.I.Y. Group for the year 2021. On the figure also showed the
Rate of Change (ROC) and Relative Strength Index (RSI) indicator to determine the buy and
sell signal for the traders. The buying signal for the ROC is when the ROC value is less than
zero while for the RSI is when the price touch below 30% of the RSI line.

As shown on the figure 3, the buying signal for the Mr D.I.Y. Group stock is begin from
May 2021 until September 2021. Thus, it signs the traders who want to enter the market to
take action on that period.

As we can see, before the graph was formed into a downtrend, the graph is having a
sideways. As the graph is doing a correction, the ROC line is moving near the zero line.
However, when the price level is breaking the correction and form a downtrend, the ROC line
is making a spike below the zero line and also below the 30% of the RSI line.

Meanwhile, the selling signal is when ROC value is greater than zero and the trend
touch 70% above of the RSI line. The selling signal is begun at the early and end of 2021.
Moreover, there also an overbought condition on the 19 February 2021, while on the 19 August
2021 was the peak price for traders to exit the market.

4
Moving Average Convergence Divergence (MACD)

Figure 4

Figure 4 shows the trading of Mr D.I.Y. Group stock from January 2021 until December 2021.
The chart is representing for the indicator of Moving Average Convergence Divergence
(MACD).

In the chart above, the MACD line is shown in blue, while the signal line is shown in
red. According to the cross rule, buy signals occur in June and August 2021 and it means the
MACD is above the oscillator or the zero line. So, it is a good opportunity for investors to buy
the shares at mid of 2021.

However, in September the MACD rises and it indicates that the shares have been
overbought, and it will shortly revert to normal levels. As shown in April and September, there
are sell signals as the MACD in those two months has crossed below the signal line which is
shown by the red arrow above. MACD is below the oscillator or zero line and the MACD
histogram turns down above zero. So, the investor has to do the right decision to sell their
shares in April and September 2021.

5
CONCLUSION

In the conclusions, there are many others technical analysis that the traders can choose to
help them understanding and identifying the chart movement. However, although there are
many positive or advantages in using the technical analysis, there are still have the
disadvantages or the limitations of the indicators. There is no absolute guarantee that any
form of analysis whether technical or fundamental will be accurate to the indicators since there
will always be an element of market behaviour that is uncertain. The investors need to use
a few of indicators and analysis tools to get more confirmation and accurate results.

6
REFERENCES
10 trading indicators every trader should know. (2019, June 04). IG Markets Limited.

MR D.I.Y. GROUP. (n.d.). Retrieved from BURSAMKTPLC:

Mr D.I.Y. Group (M) Berhad. (n.d.). Retrieved from https://www.mrdiy.com/

MR D.I.Y. GROUP (M) BERHAD. (n.d.). Retrieved from Trading View: