Tag Archives: PVT Analysis

KLCI: Profit from the Rebound.

The local bourse started the year pretty badly with 2 consecutive days of dipping. At the close, the composite index had shed by 30+ points in the last 2 days. If we were to include the black candlestick on the last trading day of 2013, that’s a total of about 50 points from high to low. Not a small number. So, is this the beginning of a bear market since our local index had rose for about 3 months starting from 28th of August 2013? A number of analysts especially those from the west have been predicting that a recession will occur in 2013/2014. Gann’s disciple will tell you that 2014 will be a bear market (or at best in consolidation mood) in preparation for a 2 years bull in 2015 and 2016. My opinion? No idea. I will let the weekly chart tell me. As for the near term, I’m very bullish. Let’s take a look at the chart of our composite index.

Stocks to Watch: Instaco [0069], MYEG [0138], MAA [1198]

First and foremost, I apologize for being absent for so long as I was busy with the preparation of a trading software that is expected to launch in November. Let’s discuss briefly 3 shares that I think will make a move in this coming week.

instaco

Instaco [0069], a technology company that got beaten down after its bonus issue of warrant, is expected to move higher in the near term. Lows are getting higher and higher, indicating that the break above the ascending triangle should be around the corner. The average accumulation price by the smart money is at RM0.29, estimated using my proprietary Relative Volume Density (RVD). RHB Investment Bank gives this company a target price of RM0.46 per share.