MORE ON MUDAJAYA

Hi All,

I guest i'm lucky when MUDA suddenly going up strongly yesterday morning.  With gap on the upside, high volume, walking the upperband of bollinger band squeeze, stochastic still 60 %, my target price of 1.30 maybe achieve in a few weeks.  But, let MUDA do the action when i need to forecast on the MUDAJAYA.

MUDAJAYA

My favorite counter after SUPERMAN (SUPERMX). I'm watching closely when bollinger band squeeeeeeeeeeeze formed on this counter.  Need to informed u, bollinger band squeeze when explode can be on the UPSIDE or to the DOWNSIDE.  Let study the chart.

Bollinger Band  (BB)

BB have 3 band ie 1. Upper band 2. Middle band ( 20 moving average (MA)) 3. Lower Band. BB can be set for short term, intermediate term or for long term investment.  When sqeeeze happen, it will explode.  Let imagine u have a balloon.  U squeeze it, then the balloon will explode.  easy??? yes.  http://en.wikipedia.org/wiki/Bollinger_Bands . next chart.

Indicators

 

Above still MUDAJAYA chart.  These are indicators that i'm looking when selecting counters for  trading.  Next chart.

Chart Pattern

 

I try to tell about chart pattern.  Too many chart patterns, one of them descending triangle.  To the upside, price must cross the red line, in this case 2.21.  Next chart.

Support and Resistance

Support - red line (2.16)

Resistance - blue line ( first - 2.28, 2nd - 2.44). Next chart

NEWS

read www.nexttrade.blogspot.com   regarding MUDAJAYA.

When to buy?????

When to sell ????

My suggestion when price drop 1 point below Support ie at 2.15

Risk and Reward

If i follow my enter price at 2.23, then:

RISK should be 2.23 -2.15 = 8 sen.

REWARD should be 1)  2.28 - 2.23 = 5 sen

                                  2)  2.44 - 2.23  = 21 sen.

There is no rules of thumb for u to do trading. Some like trading penny counters, many trading by the news and rumours. Others study the TA and FA.  What i do is just draw my guidelines so that all of u can have better idea to select good counters from a bunch of stock bananas.  For time being, i have UNISEM that i bought at 1.11.  Technology sectors now moving up as JCY jump from last few days, u can also look into ENG, NOTION and so on.  Have a look at Share Investor on list at my front page, select the counter u need to check, look at volume distribution.  I'm not talk about volume on Mudajaya becoz BB breakout (explode) always come with HIGH VOLUME. 

With That, Happy Trading and Happy New Year 2012.  !!!!