TECH STOCK IN FOCUS

Hi All,

How are u after long weekend during CNY?  Me, as usual stay at home and watch Astro Beyond.  My favorite programs are Discovery Channel and American Chopper + Bikers Build Off + West Coast Customs.  Their technology such as C&C machine is so fantastic, I wish i could have one to customise my bike. 

First thing first,

News

http://www.nst.com.my/opinion/columnist/thai-floods-corrode-global-supply-chains-1.3029

Since we are talking about tech now, let us see the tech sector today.  Big Picture. 

 

Tech sector rebounded starting from mid September 2011, forming cup and handle pattern at 14.35 point and shoot up to the target resistance 18.02.  If the resistance could not break, maybe will retrace a bit for building up momentum then pushing another round. 

There are few tech counters that I think maybe going up tomorrow such as ENG, GPACKET,GTRONIC and JCY.  Next chart.

ENG

Chart Orientation

Enter price at 1.78, target price at 1.89 and 1.94 and cut loss price at 1.63.  My cut loss point at 1.63 and not at 1.42 because nobody want to stuck near the bottom and at the same time your risk to enter is much more larger than u can chew (i mean compare to reward).  Look carefully, on Jun 2011, price rebound at support 1.63,  then cross below 1.63 on 17 Oct 2011 before cross above the same line on Jan 6, 2012.  Now become strong support, if touch, do not hesitate to sell. Next chart

Indicators

From top, 1) acc up

                 2) momentum up

                 3) stochastic at 84%

                 4) MACD histogram green and MACD above 0 line.

My View

Price will try to close gap at 1.89 to 1.94, fail to do so, price will retrace to 1.63 before rebound again.  Even though stoch at 84%, i believe price will touch 1.89.

GPACKET

Chart Orientation

Bollinger Band Squeeze, entering price at 63 sen, cut loss price at 55 sen and target price at 66.5 sen, 69 sen, 72 sen and 79.5 sen. Bullish was confirmed by white candlestick and volume keep increasing. 

Indicators

From top, 1) acc up
                 2) momentum up
                 3) stochastic at 24%
                 4) MACD histogram green and MACD near 0 line

My View

Enter at low price, cut loss minimal and reward much larger.

GTRONIC

Chart Orientation

Price cross neck line double bottom at 93 sen today.  Now resistance at 93 sen reverse to support line.  Suggested enter price at rm 1 because of strong resistance at 99 sen.  Target price at 1.08 and 1.15.

Indicators

From top, 1) acc up
                 2) momentum up
                 3) stochastic at 74%
                 4) MACD histogram green and MACD above 0 line

My View

If price break resistance at 99 sen,  there is more room to move forward.

JCY

Chart Orientation

Very big cup and handle pattern, likely to be break by tomorrow (26 Jan 2012).  Resistance at 1.26, entering price at 1.27 and target price 1.55 and 1.59. Cut loss price at 1.07.

Indicators

From top, 1) acc climbing
                 2) momentum climbing
                 3) stochastic at 50%
                 4) MACD histogram and MACD above 0 line

My View

Clear as sky, JCY have big handle and cup pattern, long white candle, high volume today, all indicators up especially stoch at 50% meaning more room to play.  All of these indication refer to 1 fact, price will try to break 1.26 tomorrow, your queue should be at 1.27.  So, good luck to u and don't be greedy.

Happy Trading and Happy Chinese New Year!!!