Posted by sunlight > 2014-08-10 22:37 | Report Abuse

Hi Dunknow,
I presume you are asking on the 2 stocks SUMATEC and KGB:
Yes, every price movement should be taken into consideration as it tells us of the market demand and supply for the stock (buyer and seller). The stock market has indeed been affected by the announcement of authorisation of Air Strike in Iraq made by U.S. president Obama last Friday where it has caused some panic selling. We are not sure the effect it is going to have on this new week. So, its price movement on the following days needs to be monitored so to determine whether there will be a price reversal or it is indeed in a bearish trend. Regardless, it is wise to have a trading plan so that if it drops to your stop loss, you need to cut loss before you incurred more losses.
I will briefly update the 2 stocks:
SUMATEC:
Though the price dropped to $0.485 last Friday, the evening doji star candle pattern was not exactly formed. As mentioned earlier, any further weakness, it will find strong support at $0.47 (formed by the gap up on 04/08) and $0.44 (resistance turn support) respectively.
KGB:
Despite the price closed lower last Friday due to the market sentiment, the uptrend is still intact as it has not broken below $0.45. Also, the selling volume has reduced more than half compared to the day before. It is still well supported at $0.44.

Happy Trading.

Posted by 1lottrade > 2014-08-10 22:44 | Report Abuse

#GUOCO—After hitting a new high of $1.96 on 31/07 it is taking a breather. It has formed a Flagpole pattern and consolidates inside the bullish flag, a break above its bullish flag at $1.80 signal breakout to retry its previous high and very strong resistance of $2.00(invincible zero resistance). A break above this psychological level of $2.00 will take it to next target of $2.10/$2.20. Failure to breakout it is expected to fall back and trade inside its bullish flag of $1.57 to $1.80. Stop Loss if $1.50 is violated for short term trader. #

Hi matrixcool

Can you share with us how would you trade in scenario above? I shall break the scenario into 3 events.

1) The stock already had big movement.
2) Next it consolidate or form a pattern
3) it broke resistance to go even higher

Most of the time we only get to notice the stock when event (1) happened of which the stock would have gone up more than 10% in a day. Some are lucky to enter on same day, some only noticed about it after market close.

Can you share with us how would you enter? At events (2) or (3)?

Do we enter at event (2) - consolidate & low volume, let's say GUOCO on 4/Aug, and sit and wait for it to move and set stop loss if it break the consolidation support?

Or do we enter at event (3) i.e monitor closely and wait for the stock to trigger buy signal price at 1.80 or 2.00 (if missed 1.80), and then start buying?

Or should we scan through top gainer during the day so we can be early bird to enter at event (1)?

Many thanks.

Posted by sunlight > 2014-08-10 23:25 | Report Abuse

Hi rocas,
FRONTKN:
Weekly chart (midterm) – bullish at Stage 2 of the cycle. Broke out above $0.165 and will try to scale higher to an immediate estimated TP of $0.20.
Daily chart (short term) – on uptrend but it formed a doji last Friday which has bearish implication at the top. Do monitor the next 2 trading days’ price movement to confirm the validity of its bearishness. Also, note that there is a Price/RSI bearish divergence since 16/07. It needs to stay above $0.165 to remain in its uptrend. Further upscale will find immediate resistance at $0.175 and $0.19 respectively.
Any weakness due to profit taking will find immediate support at $0.165 and $0.15 respectively. Stop loss if $0.145 is violated.

Happy Trading.

Posted by sunlight > 2014-08-10 23:48 | Report Abuse

Hi ck,
BINTAI:
This stock is trading in a bearish downtrend channel. Immediate support is at $0.38 and $0.37. Any reverse in scaling up will find immediate resistance at $0.40 (formed by the falling window) and $0.41 respectively. Stop loss if $0.36 is violated.

Happy Trading.

Posted by ProfitMan > 2014-08-10 23:51 | Report Abuse

ignasio - Prestar:

Under correction on a retracement of 50% since the formation of an evening star on 31/7. It is now testing the 0.65 support level. Should the gap support of 0.64/0.66 be filled, then it would trend further down towards 0.605. Need to overcome its immediate resistance of 0.695 with volume for a price reversal in order to test its high of 0.745. You may want to set a stop loss at 0.63.

Posted by chiam4192 > 2014-08-11 00:02 | Report Abuse

DEAR TCB,
HOW about SCICOM?TQ

Posted by tsy88 > 2014-08-11 00:33 | Report Abuse

stay_foolish -

Thanks for your analysis on Dolomite. Appreciated. Didn't know it is so bearish! If support at 36 holds,then at this point, it is not too far away from 39.5. If let's say I cut loss at 39.5 and if it rebounds or reverses direction, then it will be a pity. And that is why am reluctant to cut at this level having retraced 70% as you pointed out to me.

No intention and no point in averaging now as it looks so frail. Will cut when it rebounds.

Happy trading to you too!

Posted by Lz Lee Weiping > 2014-08-11 00:37 | Report Abuse

tsy88 - PDZ
Rounding bottom breakout at 0.185. Immediate resistance of 0.22. Support level of 0.195 and 0.185. If the immediate resistance is taken out it will head to an uncharted region. any weakness should find 0.195 as an immediate support. TP of 0.24 and 0.25. Stop-loss at 0.175.


Posted by yoda88 > Jul 23, 2014 12:15 AM | Report Abuse
PDZ may rise after closing with a positive white candle and as a strong volume gainer of the day.All indicators are at positive signal with Macd above the 0 line.Should the 0.17 resistance level be broken, the price target will be 0.18 and 0.185. However, a failure to stay above 0.17 it will likely see the stock trading sideways. Supports can be found at 0.165 and 0.16. Downside risk will increase if the stop-loss of 0.155 is triggered.
Happy trading.

Posted by ProfitMan > 2014-08-11 00:54 | Report Abuse

sunflower22 - cworks:

Can expect further sideways trading after it failed to take out the resistance at 0.31 convincingly. In all likelihood, will be range bound between 0.265 and 0.31. If you are bottom fishing, you will want to consider setting a stop loss at 0.23 just below its strong support at 0.25.

Posted by tsy88 > 2014-08-11 03:05 | Report Abuse

Lz Kee Weiping - thanks for reading on Pdz. Noted and appreciated.

Posted by rocas > 2014-08-11 07:06 | Report Abuse

Sunlight,

Thank you very much for the analysis. Have a great trading day.

Posted by inwest88 > 2014-08-11 07:52 | Report Abuse

Good morning TCB

Posted by inwest88 > 2014-08-11 07:55 | Report Abuse

tsy88 - good morning. I would think that if Halim Saad is indeed invovled, PDZ is a better buy than Sumatec as the later has too many free float shares in the market and may just being pushed up to sell. Just my opinion. Will be watching Ecofirst, Nishin and probably KGB today.

Posted by tsy88 > 2014-08-11 07:58 | Report Abuse

Inwest88 - good morning. Presume market should be much, much better than last Friday.

Posted by tsy88 > 2014-08-11 07:59 | Report Abuse

Inwest88 - happy trading....

Posted by tsy88 > 2014-08-11 08:12 | Report Abuse

Inwest88- thanks. Nihsin pulled back frm new high established on Friday. May be a good buy. Ecofirst is giving free warrants and will be announced very soon but their last quarter's fell from previous corresponding period. Kgb trending up nicely lately.

Posted by tsy88 > 2014-08-11 08:13 | Report Abuse

Inwest88 - last quarter's profit fell

Posted by trustme932 > 2014-08-11 08:47 | Report Abuse

tsy88..htpadu...what do u think abt it?Think can buy with stoploss at 0.68.

Posted by inwest88 > 2014-08-11 09:01 | Report Abuse

TM932 - good morning. HTpadu bones call. I used to have it but its performance have been lacklustre in recent years and seldom have activity. But as for TA I cannot comment. Have a nice trading day.

Posted by inwest88 > 2014-08-11 09:06 | Report Abuse

TM932 - HTPadu as expected, gapped up following Bones' call. Not for me to chase.

Posted by sunflower22 > 2014-08-11 09:07 | Report Abuse

Profitman,

Thank you very much for your analysis.

Posted by Lz Lee Weiping > 2014-08-11 09:21 | Report Abuse

tsy88 - just call me Lz will do..haha..by the way..good buy on PDZ

Posted by trustme932 > 2014-08-11 09:22 | Report Abuse

Inwest good morning,yes,u r rite.juz wait to c the final downleg of klci b4 buying some stocks.good luck

Posted by matrixcool > 2014-08-11 09:25 | Report Abuse

1lottrade > Aug 10
You asked a valid question and I do face the same scenario many times.Everyone trades differently I can only share my trading method and others might not agree. I will analyze the 3 events as per your query:
1) From my email, you know I am against chasing a big moving stock (especially it had started its big move) because the Risk/Rewards is not to our favour and secondly when the Stop Loss is too big many of us would find it difficult to take that losses. If you choose to chase the stock after the big move, worry you may be left out( GREED Factor) I can only advise you to set your Stop Loss according to the percentages you are willing to lose.
2) Every stock that move up steeply will needs to take a breather, during this consolidation does offer an opportunity to accumulate for the next move. The only problem the traders are facing is the time frame that it will consolidate, some for days and some for weeks before it charges again.
a)Those that consolidate say few days does not have time to form any pattern, but it does offer an opportunity to trade that is if it break its previous resistance (or High) and set your Stop Loss maybe 2-3 bids below that level.
b)Those that consolidate and retrace for a longer period ( preferable not to retrace more that 50%) and form a pattern is the one I normally accumulate and trade. A steep big move normally forms a flagpole pattern which is very bullish, and if a flag/pennant is formed it has set a clear support and resistance level which traders like us can plan our entry and exit level. Still at this time you carry some risk as confirmation is yet to issued but at least you have every opportunity to access your Risk/Reward ratio. In TA we go for pattern that has bullish implication.
3) The breakout from the consolidation, this is the best time to enter when it breakout again (or I will scale in after accumulation in event 2), the support is formed and if you buy on breakout. Set 2-3 bids below that breakout level in case it is a Bull Trap.

Hope this help !

Posted by Dunknow > 2014-08-11 11:01 | Report Abuse

Good day Mr TCB,
can you please advise me on the MKland & Uzma?
Thankssss

Posted by 1lottrade > 2014-08-11 11:58 | Report Abuse

Thanks for the detailed analysis matrixcool. Definitely learning alot from you.

As I seldom trade during events (2), may I ask based on your experience and numerous trade on (2), what are the odds or do they happen often that after a period of consolidation, instead of a continuation breakout, it actually broke the support and went lower?

May I draw your attention to K1. It had a big move on 7May, then retraced 50% and consolidated for 8 days forming a pennant. However on 21May it broke the pennant's support and continuous drop for 3 days which is sufficient to trigger a stop.

You have shared with us that you have traded K1 before in July. Can you share how you trade K1, why entry in July (when stock has consolidated for 3 months, are you not afraid it will consolidate for another 3 more months), but not in May when there was a pennant formed 8 days after the big move?

Many thanks

Posted by Bs1688 > 2014-08-11 14:58 | Report Abuse

Dear TCB, please advise on ecofirst. Tq

Posted by matrixcool > 2014-08-11 17:45 | Report Abuse

1lottrade > Aug 11,

In Event(2) I would say the odds are pretty good. If I am caught the losses is normally small as during this period I always try to buy as close to support as possible. I actually Q and buy, never chase it up.

I traded as you know purely based on TA, the reason I trade K1 during that time was because it is forming Ascending Triangle which has bullish implication and its momentum has picked up. I foresee it to break its reaction line at $0.445 into uncharted territory and scale higher.. My first entry was at a very good price around $0.415 but when it breaks above $0.445 I scaled in at $0.45/$0.455 and was caught with the bull trap because later it closed below $0.445. I cleared K1 when it could not clear $0.445 again taking some losses.

Hope this helps.

Posted by tsy88 > 2014-08-11 18:01 | Report Abuse

Lz - just to let you know that I did not do any trade on Pdz. Wanted to jump in to buy but it gapped up and did not want to chase. You still remember that I requested for analysis on Pdz!

Thank you so much for your concern.

Posted by tsy88 > 2014-08-11 18:10 | Report Abuse

Inwest88 - finally I cut loss on Dolomite at 40. Market is very active with lower liners hogging the limelight. Eah looks nice and so are many others. Think emphasis now is on penny stocks.

Posted by tsy88 > 2014-08-11 18:26 | Report Abuse

Dear TCB - kindly comnent on Talam. Am interested to buy at current level. What is the support and TP for this stock?

Posted by inwest88 > 2014-08-11 20:01 | Report Abuse

tsy88 - just got home. Once a loss is cut, just move on and try to recover from other counters. Wanted to go in Ecofirst but held back. Anyway did a quick trade on Mclean (more of a gamble as it's a loss making counter. In 18.5 and out at 19.0 / 19.5. EAH was my most profitable counter last year and thus have some sentiment towards it. Bought some about a month ago at 13 sen. Delighted to see Ho Hup and Pintaras still moving up.

Posted by matrixcool > 2014-08-11 20:59 | Report Abuse

chiam4192 > Aug 11, 2014 12:02 AM | Report Abuse
# DEAR TCB,
HOW about SCICOM?TQ #

SCICOM—Sideways Movement.

Weekly Chart—stage 2 of the cycle and very bullish. After hitting high of $1.13 it has been consolidating on a very tight sideways movement of $1.03 to $1.13 for the past 7 weeks. A break above $1.13 will take it into uncharted territory with an immediate target of $1.20/$1.23 and TP2 of $1.30. For midterm traders the stop loss level is $0.97 if violated (The midterm uptrend line and it is rising).
Daily Chart—sideways movement of $1.03 to $1.09, a break above $1.09 signal price reversal to test its previous high of $1.13 and to its immediate target of $1.20. It may have found a new bottom at $1.03 which offer a small risk buy. I am collecting from $1.03 to $1.06, Stop Loss if $1.03 is violated.

Happy Trading

Posted by tsy88 > 2014-08-11 21:37 | Report Abuse

Inwest88- yeah. In stock trading, you win some, you lose some. Important thing is to minimise your losses.

Does not matter if stock you are trading is loss making because they simply "goreng" and push up prices even if company has no fa or in the red. Furthermore, it is only for short term trading.

Congrats on your quick trade. Unsure of what to buy for penny stocks. Have to go in for quick trades but yet to transact any currently.

Posted by ProfitMan > 2014-08-12 01:01 | Report Abuse

Bs1688 - Ecofirst:

Broke out from its rectangle trading pattern when it gapped up on 8/7 with volume and in the process took out its resistance at 0.325. The gap support was temporarily filled on 9/7 but subsequent bullish momentum brought its price back up. It now looks bullish in its outlook. Strong support at 0.325 and if broken, should have further support back at 0.29. Immediate resistance is at 0.36. Initial target price is 0.41. Suggested stop loss is 0.315.

Posted by inwest88 > 2014-08-12 07:50 | Report Abuse

Good morning to profitman, matrix and the TA chart readers here.

Posted by tsy88 > 2014-08-12 07:53 | Report Abuse

Inwest88 - good morning. Expect market to be very active again with Dow up. Sntoria looks nice with new high set. Wa also looks good.

Posted by inwest88 > 2014-08-12 07:53 | Report Abuse

tsy88 and tm932 - good morning. The Dow was doing well in early trading but tapered off at the closing but still ended up slightly higher from the previous session. Meanwhile will be watching Willow and Genetec. It's crucial how is the overall market sentiment showing.

Posted by tsy88 > 2014-08-12 07:59 | Report Abuse

Inwest88 - a lot of rotational play with very heavy volume recorded. Market sentiment seems to be buoyed and should augur well for stocks.

Thanks for your stocks in consideration. Happy trading...

Posted by tsy88 > 2014-08-12 08:01 | Report Abuse

Inwest88 - will be switching to penny stocks as they seem to be very hot actively traded. Yet to decide on what stock to buy and hold.

Posted by tsy88 > 2014-08-12 08:03 | Report Abuse

Inwest88 - leaving my house now.

Posted by stay_foolish > 2014-08-12 08:14 | Report Abuse

1Million

Gpacket

Stage 4 of Market Cycle which is very Bearish. It is expected to consolidate between $0.365 and $0.42. A break below 0.365 may find strong support at $0.335. A break above 0.42 will test resistance 1- $0.46 and strong resistance at $0.6. The problem with this stock are Need to break $0.6 in order to Trend Reversal and There is lots of overhangs to clear.

Happy Trading

Posted by stay_foolish > 2014-08-12 08:16 | Report Abuse

Dunknow

Mkland

Posted by profitman > Aug 1, 2014 01:00 AM | Report Abuse X

As you are aware, it is currently on an uptrend and need to successfully take out its resistance at 0.56 to trend new highs. If it does, it carries target prices of 0.59, 0.67 and 0.80. But whether it will revisit its 1.20 level depends on a number of factors, specifically relating to its future growth and earnings prospects. Its financials in 2013 does look promising with respectable growth in its earnings and profits. Perhaps you may want to take a look into its intrinsic value to give you an indication of its share potential.

After Reading the Chart on 11/8

Stage 3 of Market Cycle-Distribution which the price can be volatile. After hitting high at $0.545, it retraced about 60%. Formed Doji with low volume on 11/8 which indicate investor is indecision. Price may further consolidate between $0.47 and $0.505. A break below may test strong support at $0.45. A break above $0.505 may test previous high $0.545 and $0.56.

Happy Trading

Posted by trustme932 > 2014-08-12 09:20 | Report Abuse

Invest88 n tsy88...dji shud be bottoming out soon...good luck to yr trading n huat arrr

Posted by Lz Lee Weiping > 2014-08-12 09:31 | Report Abuse

tsy88 - TALAMT
Stage 2, bullish. Now in correction mode. Immediate resistance of 0.135 and the next resistance is 0.140. Support level of 0.125 and 0.110. Stop-loss at 0.105. TP of 0.155 and 0.170.


dunknow - UZMA
The situation remains the same, if you're bottom fishing, do put a stop-loss at 3.59/3.60

Aug 6, 2014 11:48 PM
Gap down on 21/07/2014, and the gap haven't fully closed yet until now. It's now trading sideways in between 3.80 and 3.71. Resistance level of 3.80 and 3.90. Support level of 3.71 and 3.65. The indicator, Accumulation/Distribution have a bullish divergence suggesting that there're accumulation taking place. Stop-loss at 3.60.


Happy trading~

Posted by pvd_investor > 2014-08-12 09:59 | Report Abuse

What would be your idea about EAH?

Posted by ProfitMan > 2014-08-12 10:29 | Report Abuse

inwest88 - good morning.

Posted by ProfitMan > 2014-08-12 10:33 | Report Abuse

Thank you Matrix for sharing his trading thoughts in response to a very good question posed by 1lottrade. I believe all of us here got an invaluable real life case study lesson in trading. Thanks.

Posted by matrixcool > 2014-08-12 11:19 | Report Abuse

profitMan, thanks for your kind words.

1lottrade, i hope you did buy GUOCO when it break $1.80 today, that is the reason i collect GUOCO inside the pennant.

Happy Trading

Posted by cherry tomato > 2014-08-12 11:23 | Report Abuse

Dear TCB, please help read MUH. Need guidance to exist.
Thanks.