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.

Money Making Idea

Last week pick on Yangzijiang has earned me my first $1000 from the stock market. However, I am not really pleased as my other 2 pick slowed my earning.

In order to achieve financial freedom, I thought of a money making idea. Each week, it's not hard to see stocks achieve 10 cents to 20 cents earning. The idea is to buy 3 of them at only 2 to 3 lots each. If done correctly, by taking profit on all 3 stocks, one should be able to earn about $1000 per week. The hardest part here is to identify the 3 stocks and this can only be done by using technical analysis.

If I follow this idea, I shall be able to achieve $40k - $52k per year. Together with my monthly income, I will be able to achieve an income close to $100k per year.

Prospectus in Brief

Yangzijiang: Spot on! this counter break the resistance at 1.26 and went to create its 52 weeks high at 1.35 as at today. Let's cruise together on this ship while its hot.

IndoAgri: After a bullish run last week, a bearish engulfing candlestick appear today. However, the strength of this bearish engulfing candlestick are still unconfirmed as the volume associated with it is low. 2.55 appear to be the immediate resistance rather than 2.62 as per my last post.

C2O Holding: Disappointing counter, after weeks of consolidation, it appear a breakout seems far now as a very bearish black candlestick engulfed the prior day candlestick yesterday. Volume drying out, MACD losing momentum and RSI indicate selling taking place, it is time to drop this counter should MACD confirm with a cross-over down the signal line.

Prospectus Pick

Yangzijiang

Yangzijiang remain firmly in my pick.
Current: 1.24

- 3EMA remain above 15EMA
- RSI slanting towards over-brought with increasing OBV, suggesting demand to maintain the uptrend
- MACD remain bullish showing momentum increasing in both daily and weekly chart. From the weekly chart, a MACD bullish cross-over signal line is in the making
- Resistance at 1.26, while the support remain at the jinx 1.22 level

IndoAgri

IndoAgri break its resistance at 2.38 with ease, ending the week with a very bullish white candle.
Current: 2.51

- 3EMA remain firmly above 15EMA
- RSI slanting towards over-brought with increasing OBV, suggesting demand to maintain the uptrend
- MACD remain bullish showing momentum increasing in both daily and weekly chart. From the weekly chart, a MACD bullish cross-over signal line is in the making
- Resistance at 2.62, while the immediate support is at 2.32 level

C2O Holdings

C2O holdings
Current: 0.47

- 3EMA remain above 15EMA
- RSI slanting towards over-brought with increasing OBV, suggesting demand for the breakout
- MACD remain bullish showing momentum increasing in both daily and weekly chart. MACD just about to make the cross over signal line
- Resistance at 0.47, while the immediate support is at 0.425 level

Prospectus spot on!

Referring to Prospectus pick last week, F&N and SembCorp end up with major boo boo.

IndoAgri: shot pass the resistance level and end the week with a high volume rally.

Yangzijiang: After 4 days of price haggling at 1.22 - 1.23, it finally break the jinx resistance and end the week with a rally on Friday.

NOL: Possible Reversal !

Possible reversal pattern spotted on NOL chart today.

1. Monday - A shooting star after a strong rally is not a good sign for bulls
2. Tuesday - First sign of bear taking control with a bearish engulfing spotted
3. Wednesday - A black candlestick with a lower close forming the Bearish Three Outside Down candlestick pattern

Counter is trading along the upper channel line (Resistance), meaning a short term bearish reversal could happen. Coupled with MACD indicating waning momentum and OBV losing strength, I think NOL will continue to be bearish for the next few days.

Prospectus Update

Some updates on last week prospectus pick.


Yangzijiang: Resistance at 1.22 - 1.23 is strong. Price rise up to 1.23 on monday but was push down to 1.2 on tuesday. Price are trading within channel and MACD still showing increasing momentum and above signal line, with RSI at 54%. Will hold till my stop lose is hit on 1.17

C2O Hldg: This counter are expected to breakout soon. Mr. MACD are standing in-between the crossroad, still deciding on whether to make the cross over, but momentum continue to build up. Will hold till my stop lose is hit on 0.435

Overall: My system has achieve 83% accuracy with only 1 Booo, let's see the progress again on friday EOD. Cheers!

Prospectus Pick: Technical Charts

C2O Hldg

Comments:

- 3EMA above 15EMA; indicating buy
- Price are currently consolidating
- Increasing OBV and RSI at neutral ground; suggesting home coming for the bulls
- With MACD bullish crossover in the making and momentum building up; further confirm the arrival of the bulls
--> All indicator suggesting a breakout testing resistance

F&N

Comments:

- 100EMA slanting upwards; indicating bullish trend
- 3EMA is riding above 15EMA; indicating buy
- Increasing OBV suggesting that the current trend will continue
- MACD above signal line with increasing momentum in daily & weekly chart further confirm that the current trend shall hold
--> Price should continue to rise along the channel

IndoAgri

Comments:

- 3EMA cross over 15EMA; buy signal generated
- MACD bullish crossover, together with increasing OBV; further confirm the buy signal
- RSI currently at 51%, 61% seems a strong resistance level
--> Price should rise along the channel testing resistance at 2.38

NOL

Comments:

- 50EMA slanting upwards; indicating bullish trend
- 3EMA riding above 15EMA; indicating buy
- With RSI slightly below 70%, MACD building momentum and increasing OBV; suggesting that there are strength in the up trend
--> Price should rise along the channel with slight retrace as Price reach the upper channel line

SembCorp

Comments:

- 50EMA slanting upward; indicating bullish trend
- 3EMA above 15EMA; indicating buy
- With MACD building momentum and increasing OBV; suggesting demand to keep the price up
--> Price should continue to rise along the channel line

Yangzijiang

Comments:

- With 3EMA cross above 15EMA and with MACD building momentum and bullish cross over in the making; a buy signal is generated
- With RSI resting at neutral ground and increasing OBV; suggest increasing demand to support the current trend
--> Price should rise to the upper channel line with Support @ 1.17 and Resistance @ 1.22

Prospectus Pick

Here's my list of 6 gems for the coming week, their closing price as of 1/4/10 is as follow:

C2O Hldg : 0.455
F&N : 4.98
IndoAgri : 2.29
NOL : 2.15
Sembcorp : 4.28
Yangzijiang : 1.20

Let's see how polish this gems become by end of next week.

Back to Shirt and Pants

After 2 weeks of break, I step into the working world again yesterday joining a new Company. I realize I might not like the job as it was a rather "brainless" job. By brainless, I meant no analytical skill is involved, everything is pretty much monotonous and fixed. I hope this feeling will vanish as I become more familiar with my colleagues and getting used to the job. I must be patient, there was a freaking 65% jump from my previous salary, meaning more "side money" for me to trade. I must bear with it, bear with it, bear with it.

During this 2 weeks, I manage to finish "How to make money in Stocks" by William J. O'Neil. I am really glad that I have this book under my collection as it was really useful and give a thorough overview of the stock market. I will definitely read it again for greater understanding in the future.

I will be going through some charts later and will post some Prospectus-Pick for next week, so stay tune...

Welcome to Stock Prospectus!

Welcome to Stock Prospectus! I hope this will give everyone interested in Stock a chance to interact on a number of trading topics. Here, I will blog and share everything about stock which includes psychology management, money management rules, trading systems experience, stock analysis and mistakes.

My objective to trade is to achieve financial freedom. I would like to create a second source of income through Stock trading so that I could provide a comfortable life for my dearest family.

I am a full time professional from a MNC, all charts are based on my own analysis and understanding. Thus, by no means I think you should follow my picks blindly. Instead do your own homework and treat Stock Prospectus as a learning ground and another source of reference for stock pick.

I hope that beginners or even seasoned traders from the school of technical analysis will exchange their ideas and insight with me.

So join me in an ongoing discussion, as I work towards achieving my goal.