I sold too soon, with only ~50% gain. Studying its monthly price chart more carefully, I missed the divergence sign. Price peaked over RM2 in 2012 and since then, has tumbled by a large quantum + over a long period of nearly 10 years till 2022 - yet, the Accum/Dist line only dipped a little. And from Mar 2022-Mar2023, the flat price action combined with Accum/Dist line showed that someone was accumulating. And the last 6 months price increase in quantum and intensity was unprecedented in its past history since 2000 (23 years).
In hindsight, when: 1. Long periods of price fall (over 10 years) + huge quantum + supported by Accum/Dist line 2. Long periods of price stabilization (1 year) + slight rise in Accum/Dist line = someone was planning for a "change of hands" over a decade.
Long periods of accumulation inevitably leads to massive and sustained price increase as what we've seen the past 6 months where it literally more than doubled!
Foreign funds are net buyers in KLSE for the last 4 weeks, hence KLSE is bullish now. I believe huge foreign investment funds (in terms of billion of RM) will pour into Malaysia economy after these 6-state elections are over on 12/8/2023. Hence I expect KLSE will be a bull market in the second half of 2023. Please note that the stock market is always ahead of economy. Thank you.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
PalaniR
97 posts
Posted by PalaniR > 2023-08-11 16:16 | Report Abuse
Prepare to collect again if slide below rm1.20. hehe