Candlestick & Breakout Patterns

Rounding Bottom Breakout For OCR Plus A Bird's Eye View Since 2000

Ming Jong Tey
Publish date: Fri, 03 Mar 2017, 11:13 PM
Ming Jong Tey
0 68
Understand the psychology behind the candlestick & breakout pattern will give you an edge to realize why the market does what it does and anticipate opportunities before they happen!

Get notified on The Next Best Trading & Investing Ideas for free:

Visit ==> http://www.vipplatform.com/lp/ideas/
"Like" FB Page ==> https://www.facebook.com/BursaSGXcandlestick/
"Join" Telegram Channel ==> https://t.me/BursaSGXCandlestick
Following Message

OCR (7071): Bullish

Pattern: Rounding Bottom Breakout

Let's take a look at OCR's daily chart first:

OCR Daily Rounding Bottom

OCR broke out the neckline on 16 Feb 2017 with high volume and recently on the move again. Based on the projection of the rounding bottom pattern, the immediate target price is 0.66. 

An overhead resistance from 0.70-0.76 as marked in red box will be the area to pay attention to as profit taking is likely to happen.

What will happen if it can penetrate through the overhead resistance? Is the sky the limit? I wouldn't say so.

Fortunately, we can draw some hints by looking at the super long term chart since 2000 to provide us with a bird's-eye view for OCR.

OCR Monthly Chart

As we can see from OCR's monthly chart above, the price hit 1.30 in 2000. There was a rounding bottom (or cup and ugly handle) formed as marked in blue, with the neckline from 0.70-0.75. 

Should OCR successfully concur the daily overhead resistance, it will mean a break of the long-term rounding bottom, which will give us a target price of 1.3x. The target price also coincides with the resistance as marked in red box.

If OCR's daily chart and the target price did not make you excited, you can take a look at OCR-PA & OCR-WC. Remember to find out the detail of OCR-PA because the conversion ratio of 10 for 1 does turn me off albeit the chart and volume of OCR-PA are very attractive.

The exercise price for OCR-WC is 0.50 and its gearing ratio is more than 3. It could be a good play for leverage.

I am bullish on OCR as long as it stays above 0.50.

Leave me a comment below and let me know what you think. If you have any queries or want to share the next big stock with me, feel free to contact me via my email or FB page below.

 

Topics That You Do Not Want To Miss

How to determine the "bullishness" of the patterns- https://www.facebook.com/BursaSGXcandlestick/videos/378260995905662/

The Trade Management Technique You Need To Know - http://klse.i3investor.com/blogs/candlestick/114496.jsp

Best Way To Learn To Trade Without A Mentor - http://klse.i3investor.com/blogs/candlestick/113821.jsp

Entry Setup Illustration - http://klse.i3investor.com/blogs/candlestick/113605.jsp

Stop Loss & Safe Trading - http://klse.i3investor.com/blogs/candlestick/113510.jsp

Position Sizing - http://klse.i3investor.com/blogs/candlestick/113061.jsp

Come Up With Trading Ideas & Turn Them Into Investing Ideas - http://klse.i3investor.com/blogs/candlestick/114110.jsp

 

Cheers,

Ming Jong

Get Update From ==> http://www.vipplatform.com/lp/ideas/

& FB page ==> https://www.facebook.com/BursaSGXcandlestick/

Telegram Channel ==> https://t.me/BursaSGXCandlestick

Contact Via Email ==>  

More articles on Candlestick & Breakout Patterns
VS Bullish Flag Pending Breakout Plus A Low Premium Warrant

Created by Ming Jong Tey | Aug 02, 2017

MMSV This Pattern Has Keep Showing Up For More Than Half A Dozen Since 2017 And It Is Here Again

Created by Ming Jong Tey | Jul 26, 2017

GHLSYS Rounding Bottom Breakout - How Far Can It Go?

Created by Ming Jong Tey | Jul 20, 2017

OKA Cup & Handle Breakout With Target Price 2 & 3 Inside

Created by Ming Jong Tey | Jul 13, 2017

AEMULUS Symmetrical Triangle Breakout With Volume Analysis

Created by Ming Jong Tey | Jul 05, 2017

IQGROUP Rounding Bottom Breakout With A Beautiful Uptrending Channel

Created by Ming Jong Tey | Jun 29, 2017

CAREPLS Cup & Handle Breakout With Sky High Volume

Created by Ming Jong Tey | Jun 13, 2017

RCECAP Rounding Bottom Breakout Plus Trending Up Inside A Channel

Created by Ming Jong Tey | May 25, 2017

NOTION - A Potential Bullish Flag Is Manifested

Created by Ming Jong Tey | May 23, 2017

PENTA Revisit - Rounding Bottom Breakout In A Long-Term Time Frame

Created by Ming Jong Tey | May 21, 2017

Discussions
2 people like this. Showing 14 of 14 comments

gelong

PA price does not make sense, but mother and WC should go up further. But the operators dont care. I would say all 3 will move upwards yoyo regardless

2017-03-04 12:07

CharlesT

Its a timely buy call after PA increased almost 300% from 0.05 to 0.195 n Warrant about 100%..tq

2017-03-04 19:00

cytew

"gelong PA price does not make sense, but mother and WC should go up further. But the operators dont care. I would say all 3 will move upwards yoyo regardless
04/03/2017 12:07"

You and the author are so ignorant, OCR PA conversion option 2 is 1 OCR PA + 45 cash to 1 OCR share..and this conversion option has virtually turned OCR PA into A NON-BURNT WARRANT EQUIVALENT with actual conversion price of 45 sen , which is 5 sen lower than OCR WC conversion price of 50 sen...GOT IT NOW ? do you understand what is "NON-BURNT WARRANT EQUIVALENT " ? if you don't , please ask me...do not mislead the public ok ?

2017-03-04 19:14

gelong

yup, understood, jgn marah nanti saham jatuh susah la gua ahak2

2017-03-04 21:31

babydragon33

yes, i agree with cytew.1 OCR-PA can be converted to 1 OCR mother share with RM 0.45. With target of RM 0.70-RM 0.76 for OCR mother, OCR-PA should be easily come to RM 0.25-RM 0.31. OCR-PA is a cheap proxy to ride on OCR growth story.

2017-03-05 11:27

gelong

it depends on how much you purchase the PA, furthermore you wont have sufficient time to realize your profit coz by the time you convert, the price will start to go south. Conversion will take a week or so. If you are a long term investor I guess you were in the right direction.

2017-03-05 14:13

VenFx

Interesting discussion here... as there might be second operator to playing around here since emotional are smell from yhis exercise.
For Fa, stick to your standpoint.
Short term got to play reversal thinking.

Let see how things developing.

2017-03-05 14:22

gelong

OCR will emulate SGB, remember SGB

2017-03-05 14:42

Ming Jong Tey

Calm down @cytew. I did not check the detail of OCR-PA and that's why I stated "Remember to find out the detail of OCR-PA" in my post. Thanks for the PA information though :)

2017-03-05 18:17

Ming Jong Tey

@babydragon33 OCR-PA does seem to be a cheaper proxy than the OCR-WC :)

2017-03-05 18:24

gelong

don't opt for conversion

2017-03-05 21:59

CharlesT

Ocr pa 0.19+0.45 (conversion price)= 0.63 vs mother 0.56....

U want to convert ah?

2017-03-05 22:04

gelong

ahak2

2017-03-05 22:38

cytew

OCR PA would be a better choice to hold than OCR WC beside its lower conversion/exercise price,if upon maturity, OCR falls below 45 sen,WC will be burnt and not PA. In addition to these advantages, if there is dividends declared,PA would be entitled and not WC.

2017-03-06 05:22

Post a Comment