Millionaire Trend Trader: Sideways

Monday, November 19, 2007

Sideways

Last Friday(161107) was generally a down day with the KLCI trading in the red zone most part of the day. Regional market was generally down with HSI taking the lead with a fall of 1100 points, a result of the Chinese government curbing the underground currency exchange activities. The KLCI actually showed mild selling pressure with the CI hitting a low of 1377.43 intra-day and closed at 1386.64 (-3.36, -0.24%) with a last minute magical touch, volume reduced to 1.01 billion shares with losers (519) outnumbered gainers (276), forming a Doji candlestick. The Doji formation indicated that the market (CI) is uncertain of its direction, however, the price action for the day showed that the magic-hand is trying to maintain the KLCI above the 1380 level. For the moment, KLCI is finding good support around the short term 27 days MA, the medium term 50 days MA is coming to meet the short term MA, and the long medium term 120 days MA has gone flat indicating that the market is probably going into a sideway condition in the short to medium term. The long term 200 days MA, however, is still pointing northeast indicating that the long term trend of KLCI is still up. Looks like the market is taking a breather while waiting for a catalyst to move it further, probably the listing of Synergy Drive at the month end.

As for the DJI, it is probably trying to find a base around the current level of 13000 to 13400 amidst the many troubles the US economy is facing. As mentioned in the previous posts, the 13000 level is critically important for the DJI to defend in order to maintain its medium to long term uptrend.

Back to our local market, some of the stocks that we are following such as BHIC, KNM, MPHB, and MPCorp, the uptrend is still intact. MPHB will be suspended till Wednesday awaiting the result of the announcement on its intention to privatize Magnum.

Maybulk, Landmrk, BJCorp, Kretam and a few other plantation stocks have gone into a short term sideway consolidation. Their medium to long term uptrend is still intact.

Time and Timecom may offer short term trading opportunity as a result of the positive development between Timecom and Digi.

Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author may have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is sole your own responsibility. Do consult your dealer before taking any action.

1 comment:

Oyewole Olatunbosun said...: I prefer trading forex to trading stocks for so many reasons.However, I like your charts. I can see how you analysed the prevailing trend and made your bias.I always like to tell traders not to risk too much, and to plan their trades and trade their plans.Forex is a simple world of financial freedom if traders carefully plan for every decision they make.

Bosun
FxGlory remains my best broker since 2014; December 18, 2016 at 4:51 AM

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If you believe that some day it's going to happen, some day it probably will happen. You just have to make sure you're there when it's happening, and ideally you're at the front of the parade, and the principle beneficiary of when it happens, but it's not a kind of thing where you just sort of sit back and wait. - Steve Case

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If you buy all the stocks selling at or below two times earnings, you will lose money on half of them because instead of making profits they will actually lose money, but you will only lose a dollar or so a share at most. Then others will be mediocre performers. But the remaining big winners will go up and produce fabulous results and also ensure a good overall result. - John Templeton

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Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed. - Benjamin Graham

The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements. - Jesse Livermore

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Monday, November 19, 2007

Sideways

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