Technical Analysis – 17th Dec 2008

By the request of Mr MightyMouse (hee hee), I will take a look at Midas, Yanlord and Digi again to explain my long trades.

First up, Yanlord. I like the 20MA pointing up. If 92c breaks out, I will expect 50MA to point up too. But these are not important. The trend of the counter has turned bullish with the MACD line heading above 0. I will be waiting for the MACD histogram to turn green which will trigger one of my buy signals.  My cut loss is 75c, while TP is 92c first, and then based on fibonacci projection at around a nice even number $1 which will prove to be a good psychological resistance too.  I am noticing the pick up in volume, and will be looking for a break out of 92c with heavy volume before I may decide to add more positions.  Also notice the red arrows on the chart and on the volume. A nice consolidation with decreasing volume, which is typical of a bullish flag pattern. This looks almost like a 5 star bull flag. If it breaks out of 92c, I put the probability of it heading towards its next resistance to 85%, especially if my green histogram appear. This will complete the bullish formation to the tune of 90% probability on the upside. Supports MUST hold on all retracements, along with the higher low, and higher high theory for sustainability. Current support should not retrace below 84c.

Digi (on KLCI) is on a very nice bull trend. The move up is still intact. Interim upside target is 22.1. If it gets past that, 100MA is next. I will use fibonacci to project the TP if it does break out of the immediate range.

I went into Midas today on a  tip off.  Very nice uptrend but for a few reason it missed my buy signal. As long as the support holds at 50c it is good.  20MA should continue to move upwards to offer a moving support, while 100MA should be protecting it from below as well. If the bull trend stays, the stock should trend higher and not break the MA supports on retracement. This is important to note as it will provide the first warning that the stock has changed trend and time to take profit. A confirmation of a trend reversal on the downside (very late) is a lower high after a steep decline and rebound.  I will be looking for this to break out. If it doesn’t I must watch carefully.. cause it has the potential to form a very bearish formation but it is not anywhere in formation yet so not to worry.

So those are my 3 picks. Freaking StraitsAsia reversed after I closed my shorts! See? JINX counter. If u all pay me, I will continue trading SA. All u need to do is to do the opposite of I do. SURE make money one. TRIED AND TESTED. haha.. by a select few.

I also bought a little HSI call warrant. Not a lot. Very little due to my reduced risk appetite due to losses during the month so need to do cash management again. I got lesser to risk for the moment.

Have a good remaining week!