Sunday, July 08, 2007

Action plan

My action plan for next coming week.

Just going to list out 'defense lines' for my stocks that I find are in danger zone. Danger zone are those stocks that are trending down but are speculative. Good fundamental stocks can go down, I will buy more :)


Looks like an ascending triangle in the making. Volume is the one that I'm not too sure. Could be decreasing or not, depending on how you see it. But from weekly view, the volume does look decreasing while the triangle is forming. Assuming formation is valid, the breakout level, which is also the resistance level, is at 0.81. This price is supported by the lower trendline of the triangle, so immediate support is at 0.755. Horizontal support 1 at 0.74, if that breaks, next level of support at 0.67.

Overall, other indicators seem to support the possible breakout, with MACD and stochastics attempting a crossover.

Ascending triangle in the making.
Breakout level = 0.81 (preferably with high volume)
Immediate support = 0.755
First horizontal support = 0.74 (ema20 day support too)
2nd horizontal support = 0.67 (ema 50 day support too)

Action: Hold


Looks like channel trending, where the price bounces up and down between the 2 parallel trendline. Price is now at lower trendline, so should see immediate rebound up to upper trendline. Possible scenario is that price broke lower trendline, then could be bearish.

Horizontal support at 0.495, which I expect it to hold. If it fails, there's ema20 days at around 0.460. If that fails, it'll go 0.435. I seriously don't think it'll go so bad for yongnam, but just in case, better draw all defense lines to get ready. Been running up for a while, good to wash out all the weak holders and let the prices consolidate first before the next surge.

Short term wise, charts don't look that fantastic. No buy signal or sell signal for me yet.

Action: hold


CSC went up last week after breaking out of ascending triangle. Fell for 3 consecutive days already. Trendline is still intact, so trendline support around 0.435 should hold. If it breaks, then support at 0.42 is the next defense line.

Downtrending after breaking out of ascending triangle
Trendline support : 0.435
Horizontal support : 0.42 (also happens to be ema20days) - strong significant support

Action: Watch carefully around 0.42. If too weak intraday, will consider selling some of my holdings. Vested quite heavily on this (25 lots)

Next coming week, 11th July is the dateline for pac andes rights issue. I will pay for my allocated rights (4 lots) and apply for another 6 lots of excess rights. Let's see if I'm lucky enough to kena more than what I'm allocated for. If really so lucky, then I will get an excellent bargain, because I'm paying 0.52 for something with a market value of 0.92. Must remember to go ATM before/on 11th July!!

No more STI charts from me for now, i'm reading quite intensively on what others had written. Discovered a few TA experts doing STI charts, and I've listed them on the blog section on the left.

Have a great week ahead!