Thursday, January 12, 2012
Security Name:
CBSA BERHAD ORD (0041)
Technical Analysis:
This stock showing a classic pattern in wave theory, normally we can only count the wave for implement the theory when wave number 3 is forming. The chart now showing the price moving to peak of wave number 3. This is our entry chance for a fast money making. Based on my experience, we can buy at any price at a short wave number 4, and waiting the price fly until previous high. From my pass trading, I earn a lot from this kind of pattern, the super bull wave number 5 is the end of a up trend normally but we can making huge profit from it. Then it start to enter the long down trend. We can observe the wave number 4 will begin to form from the stochastic pattern: opposite movement, the price keep create new high while the stochastic keep create new low (red arrow). They have a opposite movement means that the energy of up trend is weaker and weaker. The best entry point is the time when stochastic reach 20, we should not worry about the price dropping after brought, else we will missing and never find the chance for riding on the bull.
Strategy:
Buy: any price between 0.36 and 0.41
Sell: Target 1@ 0.435, Target 2 @ 0.46
Cut Lose: below 0.36
