Millionaire Trend Trader: Bullish Engulfing

Showing posts with label Bullish Engulfing. Show all posts

Thursday, October 13, 2011

FBM KLCI - turning bullish for the short term

Stocks on Bursa Malaysia closed on a firmer note yesterday, in tandem with the rebound in share prices on most regional markets. The local bourse received a boost after China's shares rebounded and on anticipated hopes that Slovakia would enact a Euro-zone rescue fund by the end of this week. The local equity market was buoyed by the sentiment of optimism in the region, including China's move to buy bank shares. A bullish anticipation that the general elections will be soon, also contributed to the market's performance yesterday. The benchmark FBM KLCI rose 16.85 points or 1.19% to close at 1,428.5, after opening 2.75 points better at 1,414.4. Gainers thumped losers by 558 to 177 while 272 counters were unchanged. Turnover improved to 1.08 billion shares worth RM1.30 billion from the 1.06 billion shares worth RM1.38 billion on Tuesday.

The FBM KLCI opened 2.75 points higher at 1,414.40 but experienced heavy profit-taking activity which sent the key index to the intra-day low of 1,402.08 within the first fifteen minutes. The key index rebounded strongly and gradually moved upward with intermittent mild pullback to finish the day at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were very much in control for the day. As mentioned in yesterday’s analysis, the key index will rally higher if it breakthrough the resistance zone at 1,415 to 1,423, and it did. The strong buying momentum is likely to carry the FBM KLCI higher to test the next higher target of 1,442 and 1,450.

MACD continued to climb higher, indicating a continued increased in the upward momentum. Nonetheless, as it is still below the zero-line, the present up move may just be a bear market rally. RSI (14) was higher at 54.7, indicating the FBM KLCI had turned mildly bullish for the first time after it moved below the 50-level and turned bearish on 18/07/2011. Stochastic surged higher to 91.5, indicating very strong market strength and a continuation of the short term bullish up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, and the upward momentum may push the key index higher.

The short term trend of the FBM KLCI has turned up, while the medium and long term trend remained down. The key index is currently closing above the short term 5, 10, 20 and 30-day moving averages (MA), and is likely to move higher to test the medium term 50-day MA at 1,450 and strong resistance is anticipated at the 1,450 to 1,468 zone. With the volume going above the 1 billion shares mark, the overall market is likely to remain active. Overnight, the Dow rose +102.55 points or +0.90% to close at 11,518.85. Today, the FBM KLCI is likely to trade within a range of 1,393 to 1,455.

This week's expected range: 1336 – 1452
Today’s expected range: 1393 – 1455

Resistance: 1438, 1446, 1455
Support: 1393, 1410, 1415

Stocks to watch: SUNWAY, MUHIBAH, MBSB, MHB

Monday, March 29, 2010

FBM KLCI - Positive week ahead

Stocks on Bursa Malaysia rebounded last week after one week of profit-taking and consolidation on the previous week. The FBM KLCI rebounded in tandem with regional bourses as the Dow continued to move higher, and buying interest was spurred by the positive sentiments ahead of the Invest Malaysia 2010 conference and the unveiling of the New Economic Model at month end.

The FBM KLCI added 18.54 points or 1.43% week-on-week to 1315.14 from 1296.60 the previous Friday. Turnover for the week rose to 5.214 billion shares worth RM7.983 billion from 3.437 billion shares worth RM5.716 billion the previous week.

On the weekly chart, the FBM KLCI formed a bullish engulfing candlestick which indicated a strong reversal of the benchmark index after a week of correction. The index is expected to stage a follow through rebound this week to re-test the overhead resistance zone at 1318 to 1334.

The weekly MACD continued to move higher with the histogram turning shorter, indicating a pickup in weekly momentum, albeit the MACD is still below its slow MACD. Weekly RSI(14) at 67 has hooked up and remained in the bullish zone. Weekly Stochastic has, however, hooked down reflecting the correction mode. The indicators giving mixed signals indicated the current consolidation mode with an upward bias.
With The FBM KLCI continued to stay above the 5-week moving averages, the short term trend is up; the medium term trend as indicated by the 10-week MA which is flat, is sideways, while the long term trend as indicated by the 30-week MA remained up.

This week, the benchmark FBM KLCI may move higher on positive expectation of good news from the NEM, however, the market may profit take after the news is released.

The FBM KLCI may trade within a range of 1277 to 1339 this week, and for today it is likely to trade within a range of 1311 to 1320.

This week's expected range: 1277 – 1339
Today’s expected range: 1311 – 1320

Resistance: 1317, 1318, 1320
Support: 1311, 1312, 1313

What's happening now is that the market remains trading at very thin volumes and that can affect prices, even when just a handful of shares are traded. The decision of any fund to pull out from certain stock hits the price. - Carlos Slim

You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets. - Peter Lynch

Vision is perhaps our greatest strength.. it has kept us alive to the power and continuity of thought through the centuries, it makes us peer into the future and lends shape to the unknown.
- Li Ka Shing

Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised. - Warren Buffet

Learning is a never ending journey in the stock market. The very moment you think you have learned enough, you'll fall. - Harrison Ho

When people are frightened, they cut their time horizon dramatically, even advisors will say to sell because they see portfolios crumble and they fear people will have nothing left. It's really not rational, but it does happen. - David Dreman

I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.' - Peter Lynch

A military operation involves deception. Even though you are competent, appear to be incompetent. Though effective, appear to be ineffective. - Sun-tzu

Financial markets are supposed to swing like a pendulum: They may fluctuate wildly in response to exogenous shocks, but eventually they are supposed to come to rest at an equilibrium point. - George Soros

If you don't change, reality in the end forces that change upon you. - Stuart Wilde

The investor of today does not profit from yesterday's growth. - Warren Buffet

Analysts have always been overly optimistic.
- David Dreman

We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction. - Bill Gates

A corporation's primary goal is to make money. Government's primary role is to take a big chunk of that money and give it to others. - Larry Ellison

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

I try to learn from the past, but I plan for the future by focusing exclusively on the present. That's where the fun is. - Donald Trump

The more flexible an economy, the greater its ability to self-correct in response to inevitable, often unanticipated, disturbances and thus to contain the size and consequences of cyclical imbalances. - Alan Greenspan

The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow. - Rupert Murdoch

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

In the business world, the rearview mirror is always clearer than the windshield. - Warren Buffett

Be extremely subtle, even to the point of formlessness. Be extremely mysterious, even to the point of soundlessness. Thereby you can be the director of the opponent's fate. - Sun-tzu

Look at market fluctuations as your friend rather than your enemy.. profit from folly rather than participate in it. - Warren Buffett

I hate weekends because there is no stock market. - Rene Rivkin

Before this century is over, the Dow Jones Industrial Average will probably be over one million versus around 10,000 now. So for the long-term, the outlook is tremendously bullish if you buy stocks blindly to keep for a century. - John Templeton

A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well. - Jeff Bezos

Making good decisions is a crucial skill at every level. - Peter Drucker

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. - Warren Buffett

The individual investor should act consistently as an investor and not as a speculator. This means.. that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase. - Benjamin Graham

In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten. - Peter Lynch

The financial markets generally are unpredictable. So that one has to have different scenarios.. The idea that you can actually predict what's going to happen contradicts my way of looking at the market. - George Soros

Our favourite holding period is forever. - Warren Buffet

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

When I'm bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don't buy long stocks on a scale down, I buy on a scale up. - Jesse Livermore

I've learned that mistakes can often be as good a teacher as success. - Jack Welch

Well, you know, I was a human being before I became a businessman. - George Soros

Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information. - Peter Drucker

The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. - Jesse Livermore

Wide diversification is only required when investors do not understand what they are doing. - Warren Buffett

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception. - George Soros

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

I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. - Peter Lynch

Before you can really start setting financial goals, you need to determine where you stand financially. - David Bach

The average man doesnâ€™t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesnâ€™t even wish to have to think. - Jesse Livermore

Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. - Warren Buffett

Suppliers and especially manufacturers have market power because they have information about a product or a service that the customer does not and cannot have, and does not need if he can trust the brand. This explains the profitability of brands. - Peter Drucker

The key to making money in stocks is not to get scared out of them. - Peter Lynch

I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up. - Jesse Livermore

Millionaire Trend Trader

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Thursday, October 13, 2011

FBM KLCI - turning bullish for the short term

Monday, March 29, 2010

FBM KLCI - Positive week ahead

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