Thursday, October 25, 2007

Charts for TH

This is for TH, who requested me for some advice on 3 stocks - Thakral, Lereno, Guanzhao IFB.

I wonder why you wanted to buy these stocks? There are no stories behind them, rather illiquid (low volume) too, definitely not on the sights of BB and speculators, I suppose. Do you buy them for their good fundamentals? I do not know how well their fundamentals are, so no comments on that. I do hope you didn't buy these sub-pennies because they are cheap and you can afford them. That's the worst reason to own a stocks, really.

Thakral (above) is a subpenny. Volume is too low and I doubt that TA (technical analysis) would be useful in this case. Nevertheless I think still okay. I would like to see 0.14 resistance taken out, and that the support at 0.12 holds. Anytime it crosses the upper trendline and past the resistance at 0.14, I'll be bullish. Conversely, if support at 0.12 fails and breaks below lower trendline, it'll be bearish.

Lereno's chart seems more optimistic. Looks set for more upside. Hope to see 0.165 taken out while 0.135 support holds. Must not break below long term support trendline at around 0.120, othewise it's bearish.

This one is also set for more upside. Ema 50 days must hold, otherwise can be bearish. Look out for testing of strong resistance at 0.435. If it breaks through, it's good, if not, back to square one.

With this bullrun, if you're not making money or losing money, something needs to be done. I suggest investing in yourself first, profits can wait when you're ready. Take care!