PROTON - TO BUY OR NOT TO BUY

Hi All,

I do analysis the PROTON chart.  The price now become historical high.  Last 2 week, PROTON charted new high every 2 days.  Price take over offered 6.00 - 7.00.   Read here. http://www.btimes.com.my/articles/20111214230847/Article/  The question now is to buy or not to buy.  Look back to the day I make a prediction of PROTON from Tradesignum which later followed by top predictors.

Chart Orientation

This chart show  4 gaps until new historical high of 5.50.  From 2.70 to 5.50, there are price jumping and pullback occured.  Next chart

From top, 1)  distribution have taken place on 5 Dec 2011, distribution peak set new low every time price going high until now, accumulation have increased and spike up when reaching bottom.

                 2) momentum steady during climbing the hill.

                 3) MACD histogram now green and MACD above 0.

                 4) stochastic way above 80% line and now at 93%.  Only 7% to make it 100%.

My View

I choose not to buy because 3 reasons:

1 ) News have come up.  Remember this: Buy on rumours, sell on confirmation.

2) There are 4 consecutive gaps along the way.  I only need 3 to decide selling.

3) Stochastic now at 93% mark, only left 7% to play.  Eventhough stochastic can stay many weeks or months, but i choose to play safe.

To Buy or Not To Buy

So, with another 50sen - rm 1.50  sen to play on PROTON, I rather choose DRBHICOM, price closing today at 2.09,  now waiting Bollinger Band breakout.

Happy Trading!!!