Definition of 'Cup and Handle'

A pattern on bar charts resembling a cup with a handle. The cup is in the shape of a "U" and the handle has a slight downward drift. The right-hand side of the pattern has low trading volume. It can be as short as seven weeks and as long as 65 weeks.

As the stock comes up to test the old highs(now PJD Wc test the previous new high of 0.83), the stock will incur selling pressure by the people who bought at or near the old high. This selling pressure will make the stock price trade sideways (strong support at 0.80 as what Mr. Ooi mentioned) with a tendency towards a downtrend for four days to four weeks... then it takes off (Mr. Ooi believe the price is very bullish and continue to break new high.)

Thank you Mr. Ooi for the explanation,fully invested in PJD wc!

Posted by matrixcool > May 18, 2014 07:33 PM | Report Abuse

Bravo—Everyone is different when come to set Trailing Stop, some use indicators like SMA,stochastic etc to set their Trailing Stop.

I would like to share with you my method of setting Trailing Stops and some other traders might not agree with my way.

PJDWC—Last Friday formed a Hammer at Top (A candlestick warning, but need confirmation), I will be watching whether it can break $0.82 or not to test its previous high of $0.83 and beyond.
Now you look at next meaningful supports, immediate support is at $0.765, next support is at $0.735. So you need to ask yourself how much you are willing to give back if you cannot sell say at $0.82/$0.83? The Greeds and Fear factors come in.
You can also draw an uptrend line joining the lows from 3/32014,17/03/2014,29/04/2014 and set your Trailing Stop if this uptrend line is violated. ( As of today it read $0.75).

That says it actually breaks above $0.83 and into uncharted territory, then you may want to set your Trailing Stop just below $0.82 and if it keeps going up you keep adjusting upwards.

The decision is yours, I can only share my method with you.

Hope this helps.

Happy Trading..

Hammer = A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom.

The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening.

Thanks for sharing Matrixcool...

Latitude is Malaysia based listed company, normally this type of risk should be handled by an insurance broker which provide the services to review the company's annual insurance program (eg. fire, marine, theft, etc) and place the risk with local insurance company. Normally holding company will buy the insurance and cover all the plant & machinery for the subsidiary, ie local and oversea.

Thanks Mr. Ooi, i understand how the policy work. Almost all company will buy fire material damage and fire consequential loss policy for protection. The risk is transfer to the insurance company. As long as Latitude not UNDER INSURANCE，and the deductible is small, no huge loss will suffer by Latitude！

Those not fear will not miss the train..buy when corrections and during weaknesses!!

Latitude Tree said all its factory buildings, machinery, inventories, office equipment, furniture fittings and ancillary installations were insured against the risk of rioting, and the incident had been reported to the insurance company.

Some people scared that riot will affect the productions and the next quarter result. If the insurance also cover Business interruption, which covers the loss of income that a business suffers after a disaster(in this case is riot) while its facility is either closed because of the disaster or in the process of being rebuilt after it. Additional coverage allotted by the business interruption policy covers the profits that would have been earned, thus this policy will ensure that put a business in the same financial position it would have been in if no loss had occurred.

So, once the riot is over, what will happen next, Bullish trend！

wait till next qtr result end of May to decide further...hold or sell....

Lim, more u chase more u lost, remember Symlife story. We must sell at peak not chase at peak!!!

Share prices usually respond positively to share buybacks. One of the most common reasons for companies to announce a share buyback programme is when management considers that the share price of the company is undervalued on the open market.

However, the press down in a company’s share prices is usually temporary and could be due to lower-than-expected earnings, or cyclical effects, that will be corrected over a short period of time.

Overall, market will response positively. Since PJD is undervalue stock, just hold and we will be rewarded soon..

Total shares issued 1.207billion, Kasi holding as at 15/5/2014 total of 215,280,715 shares (17.87%)...till when he want to dispose the shares?If keep on this trend, no way that price will move!!

Someone block the price for going up..so he/she can collect at lower price...

Offer price at RM 1.55...something wrong if Encorp price is below that level...

Kasi dispose shares constantly, the question is who buy it?

Buy on weakness...just add at RM 1.60...

lim,pjdwc or l&g la will generate good returns..

Ooi Teik Bee 11/05/2014 01:01

L&G-LA is a breakout chart, pivot line is at 0.415. If you are brave, please buy at 0.425.
Presently, it is at 2nd Wave down. You need to watch up for a long body blue candle to confirm 3rd Wave up. The prefer candlestick candle is Marubosu bullish candle or bullish engulfing.
Thank you.

Dear Mr. Ooi, 3rd wave up based on today volume?

I m also subscribe for Mr. Ooi articles, I follow his stocks picks and suffer paper loss. No regret, I email him to ask which of the best 8 stocks picks for me to top up during weaknesses. He reply and I m holding it and wait for the results. I m not fear as we have expert like Mr. Ooi to guide and support. Depending on capital and stocks selection, all of us will make good money from his stocks picks..bt must hold and not for contra players.

Bonesythe, if can have article on Mp corp..sure above 60c soon...

Strong buying today...

Mr. Ooi, right time to take profit and buy back during correction?

Mr Ooi always said buy low and sell at peak, bt now at 0.25-0.255 consider peak?

Next target? 0.90-0.96?

Thanks Sephiroth, possible with good results...

sephiroth, any positive news?

Lim,hopefully u really learn from this..never said hold tight..
No stocks will continue uptrend....

kakijudi, why are you so confidence? Any insider news?

lim all counters you said will said hold tight, bt when correction come, you always panic n run..cut loss

Thanks for sharing

need positive news on development of the landbank...

If look at today selling volume to clear off those contra players...

How much will drop before ex date?

well done dsonic ca...

Good analysis..giving sometime BIMB will be trade like Takaful..

With such goldmine and just let it sleep for few years...useless management

Ch'ng must ensure that he manage company well and no more going concern issues raised by the external auditor...

Actually who is buying? Calvin and friends?

Lim, if u really borrow..huat huat la..

Lim not bought dsonic ca with money from ah long?

only worry PN17..

kakijudi, what is ur target price both mother and warrant?

hope rm1 will be reality..

please read bimb wa chart ..almost same trend when first listing...ppl keep on chasing at high price and get trap..

human behavior to chase stock at higher price....

Calvin promoter..how far mpcorp can go?hopefully not one day or one week show...

if you got huge landbank in your hand and dunno how to develop it..worthless...

agreed...look at transactions after 4pm you will know...accumulating...

pls clear it 0.435 and 0.460

hopefully positive news ahead and not only one day show...

so happy to see that...bought 0.39 yesterday

lim, if u r so confident..borrow 500k not enough,.,,,borrow 1m better....