Dunknow - I agree with Inwest88, Alpha did a very good analysis on Samudra. You should take a look at his write up.

TA wise, it is currently testing its resistance at 0.55 and will have support at 0.515. A break in 0.55 will move it towards 0.61. Samura-WA will be up against the resistance of 0.275 if it breaks 0.24 and will have support at 0.21.

In a trend reversal, especially a bullish one, there is really no guideline on when is the right time to buy in. It depends on your risk appetite. But whichever price level you enter, you need to keep an eye on the resistance levels or target price that are coming up. And of course, as we always emphasize, constantly review your trailing stop or stop loss price whichever is applicable.

You may want to buy in and lock in profits along the uptrend or you may want to trade at a larger quantity during the initial breakout and at a reduced quantity as the price trends higher. It all depends on your risk profile and as long as you have a trading plan, you will come out good.

As you know there are 4 types of gap ups which are quite easy to differentiate during normal market conditions. However, what we witnessed over the past few weeks were the exception rather than the norm, when there was a big correction across the board in most stocks with panic selling aggravating the sell down. Now that the dust has settled, most stocks are gapping up as you observed, because they were grossly oversold. I see these gap ups as part and parcel of the technical rebound and not a trend reversal as most of the stocks are finding their way back to their previous levels.

However, if there is a positive fundamental change in the stock, you will probably see a breakaway gap supported with volume after a period of consolidation in the stock and this signals a trend reversal. And this is the kind of gap ups that are most profitable.

michaelwoo - ...hahaha.... sorry, we are not qualified to offer any TA classes.

gary1122 - Hexza:

It underwent a technical rebound and is now trading back to its prices during the pre-correction period. Currently consolidating with a support of 0.80. It needs to take out its immediate resistance of 0.815 in order to re-test its previous high of 0.875. Exit if 0.80 is violated.

Duit - thanks for your concern. I agree with tsy. You are very witty and humorous and kind enough to share your thoughts.

michaelwoo / tsy88 - thank you for your kind words. Humbled by your comments.

hanis - PDZ:

Still in a bearish mode and is now consolidating sideways with a 0.245 immediate support and a 0.28 resistance. Any break in 0.28 with volume could potentially signal price reversal. Exit if 0.23 support is broken.

cherry tomato - Solid:

Bullish after breaking out from its symmetrical triangle on 28/10 with volume when it broke its resistance at 0.925 which now becomes its support level. It has achieved its first TP of 1.04 and will now work towards its next TPs of 1.16 and 1.28. Immediate support is 1.01. Exit if 0.925 support is broken.

chloe_ts - Naim:

Has bottomed out at 2.83/2.84 and is rebounding off its low. It is still trading within its downtrend channel and has not broken out. Currently testing the 3.37 resistance. If broken will be up against the next resistance level at 3.45 with an immediate support at 3.25.

MarcusKing - The PE and ROE figures that you mention are good starting points. There are no standard healthy numbers to key in. A screener gives you a first filter and I am sure you will be looking into the other FA aspects of the list of stocks from the screener to narrow down to your stock picks.

It really depends on the criteria that you set out to find your stocks and the timeline of your intended investment for these stocks. Some people may want to look for stocks with a low PE or they may want a high DY stock or a combination of both. It also depends on the industry that the company operates in. Some companies may operate in an industry where high gearing and high PE is the norm. You may want to use the ROE, DY, EPS,NTA,DPS and PTBV of leading companies as a guideline but again, bear in mind that different industries have different norms.

In any case, the screener, while being a potentially useful tool, is not a holy grail. You will probably notice that there are some stocks with low PE and good FA but with stagnating price for long periods of time. To me, the screener highlights to us the stocks that are worth taking a further look.

Connie - aphrodisiacs? hmmm.....interesting... hahaha..

Lyyinvestor - your designs enlightens up everything here!

Duit - no problem. You can kacau me anytime you like. Always enjoyed your comments.

Connie - thanks. You know me very well! ...hehe.... Yeah, had been busy. But happy the market is good to everyone today.

Connie - congratulations on IJacob. I see more upside in this stock tomorrow.

Duit - I am doing busy but doing fine. Thanx. I suppose our respect for each other is mutual.

Connie - oh, I will never flag you. Not in a million years. You are such a nice soul! But I will DHL a real special flag to you! See, Duit is getting jealous. ...hahaha....

lollipopz - hope everything turns out well for you.

Duit - I agree with you, knee down and surrender. ...hahaha...

Connie - good evening. Really impressed with your caring forum here for lolli. At least it shows people are not only focussed on making money but also have a good heart! Thumbs up!

Lyyinvestor - that art work is great! Doesn't matter where you got it from. Its really cool!

bombastic - no need to apologize for the question. It is a perfectly legitimate question and you can pose any question here. We will try our level best to help you but unfortunately, in this case, I am sorry I am unable to help you. My apologies.

But what I can say is this, with put warrants, ORs, LRs and issues like these, it is very important that you work out the details of it before entering into the trade.


Dear all,

If anyone here are familiar with this put warrant of FBMKLCI-HB, please help out Bombastic here.

duitKWSPkita - CCM:

Trading sideways in a rectangle between a support line at 1.08 and a resistance line at 1.13. For any meaningful price reversal, it needs to overcome its resistance at 1.17. It will likely continue to trade sideways unless it can break 1.13 with volume.

I am sure you have your own ways to spot a potential up trending stock but I can share with you that I usually look for reversal patterns supported by increasing volume. I also look at stocks with good FA that has been sold down like during the recent corrections. Usually if the stock volume is low and has been consolidating for long periods, I do not trade it unless there are indications of increasing momentum in the stock or there is some potential catalyst to the stock. This may not necessarily be the correct way. However, during the current market conditions where uncertainties and some bearish sentiments are still hanging above our heads, it is really not easy to spot winning stocks.

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Posted by duitKWSPkita > Oct 26, 2014 12:16 PM

Dear TCB experts,

May I learn something from you guys? Mind to share the stock price outlook for CCM?

Apart from that, can I learn when we spotted a high potential counter for near term rise. If the volume is too less (consider dead stock) the linear or consolidated level can be used as key indicator?

Thanks in advance to learn from your expert advice.

Warmest regards,
duitKWSPkita

Excel - Censof:

Since breaking out to a high of 0.67, it has corrected to its pre-breakout price level and is now attempting another run up. It has temporarily filled the gap resistance of 0.515/0.525. The support base at 0.47 is still intact. Its immediate support of 0.515 should hold but is facing stiff resistance at 0.545. If broken, will need to overcome 0.56 before re-testing 0.595.

Connie & all, good afternoon. Hope you and everyone continue to reap from the market. Cheers!

Inwest88, tsy88, Dunknow & all - Good Morning.

The Dow's performance lent credence to the limited downside it has which in turn would help steady our local bourse. Still, knowledge without discipline is dangerous.

Very happy to note some of you locked in profits on some up trending shares. Congratulations. We wish everyone a very profitable trading day!

tsy88 - Takaso has another issue attached to it. The underlying fundamentals of Takaso is weakening with a loss making last year that extended to the first quarter of this year, if I am not mistaken. So, traders of the warrant do not see the future upside in the mother share, hence will offload it even though the warrant now becomes relatively cheap. This probably explains the extraordinary case that you are observing. In contrast, TMCLife is a profit making company.

Dunknow - just to add on to Inwest88 and tsy88, warrants usually track the movement of the mother share but can be more volatile. A lot of people trade warrants because it is a cheaper entry point into the stock but some without knowing the conversion price and expiry date of the warrant. The latter is the reason why warrants can be volatile.

Do remember too that warrants are not entitled to dividends like the mother share, so, people may tend to liquidate their positions quicker adding to the volatility. As Inwest advised, do check the warrant details before trading it.

Seacera WB seems to have good support at 0.45 with a 0.56 resistance. It attempted a re-test of the resistance on 17/10 but failed as it was not supported with volume.

Dunknow - rights issues as you know is a means for companies to raise capital by selling additional shares at a discount and sometimes with warrants thrown in as a sweetener.

Whether the price rallies or not depends on how attractive the deal is and what the additional capital is utilized for. Do bear in mind that after the exercise, there will be a dilution in the shares.

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Posted by Dunknow > Oct 18, 2014 09:57 AM

tsy88 - i didn't do any trading since early last week as the market sentiment is going from bad to worse...hihi,also I am new & inexperience,so I just stay aside...do you have any nice stock?how about MYEG?or maybe KNM?
I am confuse as KNM are proposing the right issue with free warrant,but some forummer said it will make the share price drop?I thought when the propose the issue right,the share price should rally?Can share view?thanks

Connie & All - Happy Deepavali to all who celebrates it and Happy Holiday to everyone.

On behalf of TCB, we wish all our Indian friends a very Happy Deepavali and to all others, Happy Holiday. To all who travels, have a safe and enjoyable journey to your destination.

connie - ...hahaha.... had been busy lately but heh, very nice of you to drop by. Thank you for your wishes.

crybaby000 - YGL:

It has found a bottom at 0.21 and is currently consolidating. Has a strong immediate support at 0.23. Need to take out the resistance at 0.30 in order to trend higher. Will likely be trading range bound in the short term. Any positive market sentiments could see it testing the 0.30 resistance again.

tsy88 / michaelwoo - Elsoft:

Currently unable to break out out of 1.35, a stubborn resistance to overcome which if successfully penetrated with volume, will mark a price reversal for the stock. Indications are that it will likely consolidate further in the very short term. It should have strong support at 1.14. Strong resistance at 1.48.

Connie and all, Good evening. I am sure everyone had a profitable day and hope it continues to be so next week.

mbachgoh - Marco:

As with all other counters, it underwent correction with a retracement in excess of 78%. Its immediate support is at 0.16 and could have found a support base here. Any further weakness would see it trending to 0.145. Immediate resistance is at 0.175 and with strong resistances at 0.20 and 0.215. There is some accumulation of the shares when it dipped.

We do not advise on trading decisions but you can look at a couple of things. Has it hit your stop loss price? I assume you have a stop loss price in place before you enter the trade. The market has rebounded somewhat and do we want to sell on the rebound to release capital for potentially more profitable trades? Or do you want to hold on to it to ride out this period of uncertainty and have a mid term view on the counter?

Are there any potential catalyst to drive up the company's share price in the short term? The financials of the company is good with consistent revenue and profits with a fairly healthy balance sheet. However, the company is also engaged in the export market and will be exposed to the dynamics of global economy.

Hope the above helps.

SS661M - No one can predict how long the bear will last. A lot would depend on the root cause of the bear and how long the causative factors linger. The sooner the causes are overcome, the sooner the recovery in stock market. Any good economic news could also trigger a recovery. There will still be trading opportunities in between and we just need to spot them.

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Posted by SS661M > Oct 16, 2014 06:28 PM

Hi, TCB. Is the bear going to stay for long or it is just passing by?

duit - ....hahahahahaha.... that is a really really good one. Thanks for brightening up things!

Dunknow - ...hahaha.... that is a good one.

Well, during times like these, TA becomes even more useful because TA as you know provides us with the data generated from the market and from the actions of traders/investors in the market. It also gives us a sense of the prevailing market psychology. People who intend to bottom fish, will be on the look out for signs of the stock price bottoming out or for reversal patterns. These can be gleaned from the indicators and charts, although are not the holy grail, but do provide us with some form of guidance.

But I can't really emphasize enough that DISCIPLINE in trading is really the key in bearish times. In a bull market, everything is easy. Whatever price target that you set will eventually be reached and whatever counters that you look at will likely be a winner. But the bear market will separate the men from the boys, figuratively speaking, (sorry, no offense intended to anyone. Just want to highlight a point) because it is not easy to have the discipline to cut loss not to mention the huge task of finding winners in a sea of red counters. I sometimes commit the same indiscipline that all traders commit too because we are all humans.

Whether to hold Samudra and KSSC for 4 months or not depends on your trading strategies for these 2 counters. If the growth prospects are good for these 2 companies, it may make sense to hold for the medium term on the assumption that it will recover its value over time. If not, you may want to consider releasing capital for other trades or even to re-enter these stocks when their price have settled to a new low price level.

This is not a market crash but a big market correction that sends it into bear territory. There are many here, like Matrix and Inwest88, who have experienced a market crash and it is a horrific scenario. Many who lived through it will not want to see it happen again. In a crash, there can be many sellers and no buyers and the buy and sell bid prices can be galaxies apart. It is basically all doom and gloom! Whereas in the current market scenario, there are still a lot of buying interest in many counters.

That is why TCB strongly advocates a trading plan supported by a discipline to execute the plan so that traders/investors, especially newbies, do not lose your life savings during your pursuit of a fortune.

I hope the above answers your queries.

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Posted by Dunknow > Oct 16, 2014 11:14 AM | Report Abuse

Hi Profitman/TA sifu ... can you please advise me with current bearish market,does TA really count?I am currently holding SAMUDRA/KSSC & plan to hold for 4 month?Another question is due to currently plunge of US Market,is it a sign of market crash or correction?

Thanks in advance...now I really same as my nick name,DUNKNOW..Hihihi...

hanis - Dsonic:

Under correction and likely to remain bearish. It has 2 failed attempt break 1.71/1.72, currently the strong resistance level. Temporarily it should have strong support at 1.44 which if broken would trend to the next support level at 1.35. Immediate resistance is at 1.60.

During bearish times like these, you need to be cautious in intra trade. We will usually bottom fish and you need to look out for sellers exhaustion or reversal patterns before moving in. If you are a high risk taker and decided to trade intra-day, you need to be very discipline and cut loss immediately it hits your stop loss and lock in profits when it hits your target price.

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Posted by hanis > Oct 14, 2014 10:40 PM | Report Abuse

Dear TCB,
Appreciate your comment on Dsonic. Can we trade intra day on this counter ?
Thanks.

duit - please continue to be yourself. We know that is your style of writing, your directness and you sincerely mean no harm. Feel free to continue sharing your thoughts. Although the market is bearish, I believe there are still pockets of trading opportunities but finding them is not easy in this environment.

zan122208 - welcome and thank you for your comments. We appreciate your concern and thankfully, so far, visitors like your self, have in general been mature, smart and responsible. But we do accept that as an open forum, there can be comments like those from time to time. However useful information of any sorts that would help investors in their trading are most welcome as we believe in information sharing for the benefit of everyone. We hope you have a very fruitful day in the market and thank you for sharing your thoughts.

Inwest88, tsy88, michaelwoo, Duit, zan122208 and all - Good morning.

It is very important to have trading discipline especially during bearish times like this. If the stock hits your stop loss, you will want to seriously exit it without a second thought to avoid being a long term investor in the stock. Do trade with care. Many traders have a trading plan with stop loss and trailing stops but may not have the discipline to execute it. Just a friendly reminder and remember "MPML" - Maximize Profits Minimize Loss. Happy trading!

michaelwoo - MMSV:

Under correction after hitting a high of 0.62. It is now trading under the bearish engulfing candle of 7/10 which pre-empted the bearish sentiment on this counter. It broke down from its support of 0.475 on 13/10 and will likely test the next meaningful support level at 0.42. Immediate resistance is at 0.505 and will need to fill its gap resistance of 0.515/0.525 with volume for a price reversal. You may want to consider a stop loss at 0.45.

Connie & all - good morning

Inwest88, tsy88, michaelwoo, Dunknow, Duit and all - Good morning and we wish all of you will have a smooth and profitable day in the market.

TraderR88 - MEGB:

As at 9/10:

Currently consolidating sideways with immediate support at 0.405. It is unable to clear the 0.43 resistance. Could be trading range bound in the short term. Shares buy back could be seen as a confidence builder to investors.

As at 6/10 by stay_foolish

Stage 4 of Market Cycle which is still very Bearish. It is still trading in Downward Channel. Formed Spinning Bottom on 18/09 which indicate Price Reversal. Further Resistance 1 is $0.43 and resistance 2 at $0.45/ $0.485. Any weakness may find $0.395 as support 1 and stronger support at $0.365.

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Posted by TraderR88 > Oct 7, 2014 01:31 PM | Report Abuse

Good day all TCB masters here, can please advice on MEGB? Recent lotsa shares buy back by shareholders, good news? Thanks in advance..

Connie - yes, I am trading Censof. GST themed counters seems to be the order of the day. After the sea of reds, its good to see greens for a change. Thanks. Great to see you here as always.

michaelwoo - Pasdec:

Still in a correction phase and may have found a good support level at 0.54. Immediate resistance is at 0.58 and is an important resistance to overcome at the moment in order to test its next resistance at 0.66. The selling momentum seems to be tailing off and may go into a sideway consolidation phase if 0.58 is not taken out.

Perhaps you may want to look into the FA aspects too to help you decide better. A quick scan of its FA revealed that in 2013 it recorded a decreased revenue and had there not been a substantial gain on disposal of quoted investment, it could very well have a recorded a drop in profits too. However, they did improved their performance in its latest quarterly report. In 2013, they had an increased negative cash flow position from operations. Please note that this is just a quick scan of its financial statements. So, the company will need an improved performance this year as one of the catalyst to a higher stock price.

Besides the option of holding on to the stock, you may want to consider releasing capital from this investment to enable you to re-channel your investment into other more profitable trades. These are just some of the considerations to look at and you will also need to know why you invested into this stock in the first place. It could be based on certain expectations on the company and are these expectations still valid now.

These are just some of the angles you can explore to help you decide on what your next step is. Hope this helps.

Connie and all - good morning. Have a profitable fishing day.

michaelwoo - welcome and thanks for dropping by. Well, this is an open forum which you can pop by anytime and if you need to seek TA on stocks, just post your request here. We will need a bit of time to respond but we will definitely respond. But do note that our response is not a recommendation to buy or sell and we do not recommend stocks here.

This is a place where we share information and you can contribute any information that you so wish as we believe in learning from each other. But we are strong advocates of trading with a plan to minimize losses, especially during times like now and maximize profits.