New trades done

Before I go into today’s post, I would like to mention I have been watching the DJIA chart. Head and shoulders formation. Cracked the support, but the height is not that high, so the target has been reached at this point. Interesting stuff.

Alright let’s dive into things. I bought the STI Call, and went long Yanlord,  and Digi from KLCI. I have not lost a single trade on the KLCI so far and I think I got a lot to thank my remisier for, cause he is well versed in the behavior of the KLCI. Digi is an index component counter I believe.

So what did I see on yanlord. Nice bull flag on consolidation, with low volume. A good flag pattern. Noticed the nice shooting star a few sessions back to signal the peak. Yanlord isn’t in my radar but I got a tip off. It’s flag pattern is nicer than StraitsAsia (I closed my short. Had to cut it. Lost again. 100% lose record for this.. jinx!). A break out at 92c on high volume will see buying more. Extremely strong resistance there.  Support is at 72c, and I will put a stop at around 70.5c which is a 50% retracement.

Also went long on Digi. I noticed the big jump today but the caveat is that there is no volume so one has to be very careful with this. Cut loss is around 20.5.  Interim target is previous high at 22.1. Fairly good risk reward. Triggered my scanning buy signal. Notice MACD line is above 0. Signifies strength. I need the volume to confirm, however.

That’s the S&P 500 for you. It is not quite a symmetric triangle, but rather a consistent higher low. The latest pull back comes with lower volume as I will expect for the rest of the season. Calculations are showing possibly an extended consolidation before the next push up. Resistance and supports as seen. 920 vs 820.

Aint that a prety chart? Notice the higher lows and a key resistance level? That’s a nice ascending triangle for you. Also noticed the completion of an evening star formation, but did not havea follow through thus far. This line has been in play and I do expect a breakout coming. I may buy the HSI call on a breakout and a re-test of that important resistance turn support. Keep an eye!

And here’s our darling, the STI. A 3 star symmetric triangle of sorts which has been weaker than the HSI. Watching for 1820 to breakout which will ultimately see it test that key resistance above it. If it breaks above and confirms it, it is a bull run.  Support is at around 1710 which is where my cut loss point is. A better one could be the gap fill leading towards 1680 but I rather put it at 1710 cause if that cracks, the upside is weak and I may wanna take off and wait for a better opportunity again. Based on the triangle formation it should b due to breakout soon if it is bullish. Hence I took some tikam call warrant today, expiring in March.

I am switching my stance from a neutral to a more positive bias. However until confirmation, I will not shout bull yet. We need to see breakouts that are sustainable.

I will be continuing to blog as and when there’s a noticable change, or an interesting trading opportunity. Continue to watch this space!