Supper bites

One of my friends texted me on Allgreen so I shall do an analysis on it.

Allgreen has been gathering momentum. It has not broken out yet and is resisted by its critical resistance of 46c.  I would rate it a 2.5 / 5 star play. Here’s what I will be looking out for.

- A breakout at 46c with high volume. This is not seen yet.

- A valid breakout, based on my calculations, could see an eventual target of around 60c.

- I wanna see MACD go above zero with a MACD buy signal.

- Good to see when 20MA curls up to kiss 50MA in a neck tie.

- A better trade if the price is above 50c, as anything below makes the risk of trading higher. At 50c, if it moves 3c, that’s a 6% move. Very volatile. U gota take more positions with a 50c stock and you could either huat like crazy, or die like crazy. So I will wanna do my risk management on this and the above points are some stuff to consider. The cut loss zone is around 20ma which is 40c, give and take I will put it at 37c which is also a support area. So that’s a 9c risk.  For a 50c stock, if  you did 10 lots, that is a $900 risk. But if it does go up ahead towards my TP, it would be a good trade.

So this could go onto my watchlist. I will watch this one for some action.

Another chart triggered my buy signal. This one’s KLCI’s Tanjong. Look at that. Testing 200MA. So bullish! Using fibonacci I found it is resisted where it is now, and the previous intraday high. It is likely to face the 200MA resistance beforehand too making this a little risky. The first test of the 200MA (like most MA) sees it bouncing off it, which is quite a good thing. What I will be looking at is for some volume to signify it has ‘woken up’.

My remisier Jay is aware of these stocks as it is on his list too so we chart them, do our own individual analysis and if triggered, a mass SMS is sent. Hence I can still work, get the SMS and react to it by giving him the instruction cause I have already done my own homework and I know where my lines are. All I need is someone to watch out for me. And believe me when the mass SMS is sent, a lot of his clients will enter too. Today I got the sms for Yanlord at 9.15am. But I happened to be looking at it anyway so I went in. He doesn’t tell people to trade if the market conditions are no good. la papillon from bullythebear can atest to that although he is no longer a trader. There were months where Jay didn’t earn much cause he told his clients not to trade. That got me into signing up with him cause I like remisiers who work hard to help their clients make money and are genuine about it. It helps a hell lot that he is very good with TA and over the past year I learnt a lot from him too.  Our trading strategy is simple. We look at stuff together, we trade and make money together. If need be, we will cut positions together too. If it weren’t for him, I may not have the guts to cut losing trades in time myself. He reassures me and gives me the push to cut it myself. He taught me to fish, and for that, I will always be  greatful….

My gain, is also your gain as I share my experiences with all here.

Have a wonderful Friday! I will evaluate weekly index charts over the weekend again. Have fun!