Prospectus Pick

The past week has seen the bail-out plan causing mix-feeling in the market. Due to the volatility of the market, I hold my urge to dash into the stock market, thus the lack of posting. Over the weekend, I scan through the chart and discover 2 potential gems that could possibly make some money this week.

Etika (5FR)

Key resistance broken. Etika could see more upside potential, after staging a strong break above its key resistance at 0.65 and went on to create new high at 0.775

Indicators are bullish. Buy signal is generated with 3EMA crossing above 15 EMA. Buy signal is further confirmed with the appearance of Bollinger Squeeze. With MACD also crossing above signal line, it suggest that the upside momentum should continue. The fact that OBV are rising and RSI in over-brought zone suggest that demands are high and people are still queuing to buy.

Support. 15EMA should act as a decent support level.

Biosensors (B20)

Breaking of key resistance could suggest more upside

Key resistance. Biosensors could see more upside potential, if it successfully breaks above its key resistance (blue circle) at 0.835. And might possible see it test the next resistance at 0.87. Failure to break above 0.835 could see the price retrace back to test its key support at 0.75

Indicators are bullish. Buy signal is generated with 3EMA crossing above 15 EMA. Buy signal is further confirmed with MACD crossing above signal line and surge into bullish zone. The fact that OBV are rising and RSI slanting towards 70%, suggest that demands are high and upward momentum should continue.

Key Support is at 0.75

Psychological Trading

At every price, there are both Buyers and Sellers.

Both Buyers and Sellers never aim to lose, they have exactly the same objective, PROFITS;

No Buyer would BUY if one thinks that price will DROP;

No Seller would SELL if one thinks that price will RISE;

If all Buyers think that price will FALL, then nobody will buy thus price will drop and drop;

If all Sellers think that price will RISE, then nobody will sell thus price will rise and rise;

Stock is not about trading the market; it is all about winning human emotion.

Bulls Correction or Emerging Bears

Bears have been riding the bulls this week, with majority counters saw their price in red. I have been cautious and decided to stay away from the market this week till the tide changes. So is this just a bulls correction or the emergence of the bears?


Channel Pattern broken. STI could see more downside potential, after breaking out of its channel pattern which formed way back in January.

Indicators are bearish. OBV are still around similar level suggesting that people are still quite confident about the market. However, with both RSI (Oversold) and MACD indicator falling constantly, they suggest that the downside momentum should remain. Support level is around 2780.

2 Possible Outcomes.

1. Downtrend Continue - 3EMA cross below 15EMA and 50EMA, suggesting downtrend shall continue in the short term.

2. Correction End - Potential reversal as Gravestone Doji (with very small lower shadow) candlestick is spotted yesterday. However further confirmation is required on the next day. If next day opens above the real body of the Gravestone Doji, it means those who shorted at the opening/closing of the Gravestone day are losing money. The longer the market stay above Gravestone Doji’s real body the more likely these shorts will spark a rally by covering their positions. The Gravestone Doji usually represents the graves of those bears that have died defending their territory.

Yangzijiang

Yangzijiang seems to be losing steam after the recent rally. If tomorrow gap lower or end lower, I will suggest to cut lose and vest in another gem. If you are holding on to paper profit, I will suggest to take profit first and vest in another hot gem while waiting for Yangzijiang to finish correction.


Lower Channel Break. YZJ could see more downside/correction in the short term, after a break below its lower channel line.

Indicators are bearish as well. 3EMA cross-below 15EMA, suggesting the start of a downtrend in the short term. MACD is in a bearish mood as it cross-below signal line and momentum losing steam, suggesting more correction should follow. The fact that OBV are falling and RSI slightly below over-brought zone slanting towards neutral zone suggest that demands are decreasing.

Greece Say...

Greece is the "IN" thing now in the stock market. Getting tired of all news article reporting on Greece, Greece and more Greece.

When market sell-off, Greece is the main reason behind it, then when it rebounce a little, speculate that aid is on its way to Greece. One thing I know for sure is, if I trade with the news, I sure die very fast.

Market isn't really good thus have no prospectus picks for the past few days. I sold my counter on ChinaAOil ($1.70), YangZiJiang ($1.35) and Bakertech ($0.545) as bearish sign was seen in chart and also to protect my paper profits. I also vested my interest on a new gem called Broadway ($1.10) today.

52wk high suggest more upside potential, vested at $1.10

Long Term Uptrend. Broadway could see more upside potential, after staging a strong break above its 52 week high (1.09 - 1.10) and went on to create new high at 1.14. It was also in an uptrend since the beginning of 2010

Indicators are bullish. 3EMA just bounce off 15EMA recently and MACD just about to make the crossover above the signal line with momentum building up, suggesting more upside should follow. The fact that OBV are rising and RSI slightly below over-brought zone suggest that demands are increasing.

Support is at $1.06.

Prospectus Update

A very fruitful week, jackpot on all my pick last week. Here's my result slip

I am not happy even though I hit the jackpot on my picks.

(1) I committed my first mistakes in trading, I could have earn more but greed overcome me. I go against my chart reading, and allow Yangzijiang to drop over $0.08 before I finally decided to let go, but by the time I give the order, trading halt was issued by the counter. I will try to post the chart later to highlight my mistakes, I hope I will not commit it again.

(2) I didn't manage to hit my weekly target of $1000.

Prospectus Pick

Apologize for the delay in posting this week Prospectus Pick, as it was 3am at night yesterday after I'm done with my analysis and I got to wake up for work at 6.30am. Thus I decided to post the pick today.

Referring to my previous post of earning $1,000 a week idea, I decided to try the idea and will share the result with everyone to see how I fair after 6 months. So this week 3 gems are...

YANGZIJIANG

52wk high suggest more upside potential, vested at 1.21 and still holding

Key resistance broken. YZJ could see more upside potential, after staging a strong break above its 52 week high past week and went on to create new high at 1.49

Indicators are bullish. With both the RSI and MACD indicator still climbing steadily, they suggest that the upside momentum remains intact. The fact that OBV are rising and RSI in over-brought zone suggest that demands are high and people are still dying to buy.

Support is at $1.32. 15D EMA should act as a immediate support level.

BakerTech

Bullish breakout suggest more upside ahead, vested at 0.47 today

Consolidation broken. Bakertech could see more upside potential, after breaking off from its consolidation phase and staging a strong break above its 52 week high past week with high volume and went on to create new high at 0.505

Indicators are bullish. With both RSI and MACD indicator increasing, they suggest that the upside momentum should continue. The fact that OBV are rising and RSI in over-brought zone suggest that demands are high and people are still buying.

ChinaAOil

Bullish breakout suggest more to come, vested at 1.67 today

Consolidation broken. ChinaAOil could see more upside potential, after breaking off from its consolidation phase and staging a strong break above its 52 week high past week with high volume and went on to ride a new uptrend without looking back.

Indicators are bullish. With both the RSI and MACD indicator climbing steadily, they suggest that the uptrend momentum should remain. The fact that OBV are rising and RSI in over-brought zone suggest that demands are high and people are still dying to buy.