Tag Archives: triangle

Stock To Watch: Alam [5115]

Alam, one of the most popular small-cap oil and gas company, had recently formed a beautiful pattern which traders like a lot. After consolidating for around 2 months, price broke above the huge triangle on the 16th of July with substantial volume. The momentum continued for another day, where we see the share price of Alam broke the 1-year high at ease and closed at RM1.58 before it retraced to lower price levels on subsequent days. By joining the highs and lows for the past few days, we could see an obvious triangle. Price never close below the RM1.52 support line during the formation of the triangle and the lows were moving higher each day, indicating that the bull were in-charge. Once the share price moves above the upper line of the triangle, it’s a buy. Traders could also see Alam as forming a pennant (a combination of the 2 up days and the triangle), of which the buy decision would be the same as the triangle pattern. The relatively low volume during the formation of the triangle compared to the 2 up days means that it is very likely that the share will break above the upper line.

alam

Do trade cautiously as the market is getting weaker.

Stock to Watch: MHB [5186]

Before we perform a thorough analysis on the price development of MHB [5186], lets take a brief look on the general market movement. As can be seen from the chart below, the index is still moving within the sideway channel (or in a rectangle). Market was weak in the morning, dragged by the poor performance of the regional market, but began to recover in the afternoon session and managed to close just below its opening, thereby forming a doji. With buyers coming in everytime the market touches the 1766 support level, it is hard to tell at this point whether the bull or the bear will triumph in the coming weeks. We need to watch the upper and lower boundaries of the sideway channel closely.

klci (4) (1)

Stock to Watch: Glomac [5020]

Opportunities for day trading are getting scarcer. With foreign funds began to offload their massive holdings since last week, coupled with the weak performance of the regional markets, our local bourse is expected to move sideway/lower in the near-term. The 1765 support is a crucial level to watch for as a breach will lead the composite index lower, which will definitely cause a round of sentiment-based selling across all shares. While most shares are gradually reversing, some are consolidating and are waiting for the right moment to move to higher grounds. Glomac [5020] could be one with such upside potential.

glomac

Stock to Watch: Benalec [5190]

Led by panic selling across Asia market (WHY? Click here to find out), KLCI gapped down by 15 points in the evening session, widening the difference in the number of gainers and losers. Instead of making an analysis on the local index, we shall discuss on the price movement of Benalec, a good stocks to trade because it is one of the most “obedient” shares that respect all the main supports and resistances. Also, since the share price has been moving sideway for 2,3 years (long-term trend), its effective trading range is clearly provided and thus the price movements are more predictable in the intermediate term. Let’s begin our analysis.

benalec