Tuesday, January 17, 2012
YTLLAND (2577)
Technical Analysis:
YTLLAND acting a nice stock character, just like human, each stock have also it's own personality. YTLLAND have a typical movement in chart plotting which composed of 3 stages, push up, distribution, accumulation repeat again. Lucky now, this stock is just finishing accumulate stage and going push up.
As you can see the red arrow showing the distribution stage, which mean the smart money selling or their holding store continuously. Any one buying at this stage is gonna cut lose as the huge supply keep building a down trend, no one got enough buying power to average down or against the trend. At the end of the trend, they rapidly pull down to chock out investor who still holding the stock, thus create a bottom area.
After the long time dropping, is time for our chance to grab because the price is guarantee lowest as no body willing to sell any more. The price will have a correction and moving to normal level to enter a accumulation stage. At this point, smart money keep buying stock, the price here is their cost for next bullish. Normally they take month to done before push up, there is no trend and the price charting is flat as shown at blue arrow above. If you buying at this point is ok, but you need to wait long time before it activate again and your capital is locked.
Therefore, you can detect a buy signal using Bollinger Band. Entering accumulation stage narrowing the Bollinger Band. Once the candle stick break out the middle band then upper band, supported by volume like the yellow area in chat, the bullish is just begin. The Bollinger Band Width will re-expand like a mouth look, this is the chance for entry. At the moment, the worst is over but be careful as the smart money sometime will chock down the a bit before push up.
In my opinion, YTLLAND is picking this Chinese New Year Rally for a easy push up stage. I still remember, I made net contra gain RM5000 from this counter too at last Chinese New Year. Will YTLLAND this year, giving an AngPau too? Compare to RM 1.90 previous price, RM 1.12 now is consider under price.
Strategy:
Buy below @ 1.12
Cut Lose @ 1.01
Target Price @ .1.32
