DRBHCOM, BIMB and E & O

Hi All,

Dow Jones drop -49 point.  So remember, when DJ down, normally KLCI will follow.  But, these counters maybe going up tomorrow.  Thanks for Kamal Aziz for providing the long list that need to be scan.   

DRBHCOM

This week Khazanah will decide which parties will be the winner of the PROTON buy out whether Dato Nadzmi or DRBHCOM.  The upper hand most possible with DRBHCOM, which supported by Tun Mahathir and having collaboration with Volkswagon.  I queue last week at 2.17.  Let see the chart.

Chart Orientation

White candlestick protrude and break out upside from BB squeeze.  The trigger candlestick (white hammer at bottom - blue color) on 6 Jan 2012 tell traders this counter will going up soon. On friday, u see the high volume during breakout. My target price as per chart, i don' t draw cut loss point neither entering price.  Why?  Look at My View. Next chart.

Indicators

From top, 1)  accumulation picking up.
                2)  momentum climbing.
                3)  stochastic at 73%.
                4)  MACD Histogram green and at 0.

News

http://www.btimes.com.my/Current_News/BTIMES/articles/zton/Article/

http://bigdogdotcom.wordpress.com/

My View

I have enter DRBHCOM last week after I wrote the title "PROTON - TO BUY OR NOT TO BUY".  It is up to u to buy or not because DRBHCOM have move up +14 sen last friday before closed at 2.17.  If u see the target price, it is quiet rewarding if DRBHCOM win the Proton buyout. So, i have put all necessary information for u to make a decision.


BIMB

Chart Orientation

Last friday, bullish candlestick morning doji star forming, volume increased  drastically.   I draw cut loss line at 1.93,  enter price at 2.04, 1 point above friday highest, and target price cum resistances at 2.1, 2.17 and 2.29.  I believe u will check your resistance before make up your mind.  Next chart.

Indicators

From top, 1) accumulation start moving up.



                 2) momentum still strong upward

                 3) stochastic at 46%

                 4) MACD histogram green and MACD above 0.

Note:  U also can used Moving Averages (MA's) to determine your enter position.

Risk and Reward

Let say u enter at 2.04

Risk       :  2.04 - 1.93 = 9 sen

Reward :  1) 2.10 - 2.04 =  6 sen
                 2) 2.17 - 2.04 = 13 sen
                 3) 2.29 - 2.04 = 25 sen
  

My View

Morning Doji Star candlestick show strong indication of bullish.  Other than that,  stochastic still low and MACD 4Red 1Green (4R1G) and stay above 0.  I also look at other indicators Bollinger Band squeeze which will be happen anytime soon.  Remember BB squeeze will break out  upside or having a break down.

E&O

Chart Orientation

White candlestick cross 20 MA, BB squeeze waiting to breakout.  Volume high on last friday,  entering price suppose at 1.46 but revised to 1.47 when strong resistance at 1.46.  Cut loss price at 1.35.  Next chart.

Indicators

From top,  1) accumulation flat.
                  2) momentum down.
                  3) stochastic at 20%
                  4) MACD histogram green and at 0.


My View

Very weak at momentum and accumulation but good on stochastic and MACD.  Cross 20 MA and waiting for BB breakout.  My thinking this counter will be going up.

I have a few counters that I still think can going up.  Look at TradeSignum. 

Happy Trading!!!