KLSE Stocks Analysis:
As I was updating my charts and searching for interesting trends development, one counter caught my attention. It is SANBUMI (9113). This counter is overall bullish as the current pricing is above major moving averages (20, 50 and 200 days). What is more interesting is the pricing yesterday showed that 20 days moving average is a good support as it went below it and rebounded above it within the same day with good volume. So, how does the overall trend looks like?
Rounding bottom observed starting late in 2017 and all the way to Sep'18; hitting low of 0.115 cents and high of 0.34 cents. It then went into consolidation between Oct'18 to Nov'18 (triangle; also known as pennant) and got out of consolidation to move up to 0.38 cents. Once again, it went into consolidation between Dec'18 to early of first week of Jan'19. It then move up again to the high 0.435 cents. Consolidations happened again and this time with flag formations (last two weeks) until yesterday whereby it is showing an attempt to get out of consolidations by staying above the 20 days MA.
A closer zoomed view of the chart as below:
Every vertical spike is followed by consolidations and price continued to go higher each time after breaking out from consolidations. Overall trend remains bullish. Base on the current trend, it is likely that Sanbumi will attempt to test its resistance at 0.46 cents, consolidations and then continued with next resistance at 0.60 cents. Downside support is at 0.365 cents and followed by 0.30 cents.
Using the levels above, one can use risk/reward ratio to determine its entry and exit strategy.
Good luck and all the best.
Sanbumi closed at 0.36 cents today with low volume; typically consolidation behavior. Watch for rebound at this level or lower level at 0.30 cents. Current price action is still within consolidation - flag.
ReplyDeleteDisclosure: I have entered a position in Sanbumi today for short term trade.
Same question popped up again on should I take profit? This is a good question as I am happy that you are making profit. I would encourage all my friends and family members to read the My Experience with Target Profit posting. Every individual has different required rate of returns and investment/trading objectives. Only you can answer that question. I am just sharing my analysis and have included the support and resistance levels in the chart for Sanbumi.
ReplyDeleteKey point here is that if your emotions are running high (keep checking the price, looking at the screens, emotions swinging high and low as the price fluctuates), that's a clear sign that your emotion is taking over your logical thinking. If you cannot handle it, its always good to lock in the profit and exit the trade. Hope this helps.
Thank you Alpha Patterns. I made a decent 5.5% gain again on Sanbumi. Please keep sharing with us your analysis.
ReplyDeleteYou are welcome @ehooi. I am glad that you are earning. Will definitely continue to share.
ReplyDeleteSanbumi price and volume picking up. Can I add more positions?
ReplyDeleteHi, found this link via telegram. I missed the boat for Sanbumi. Can buy now?
ReplyDelete@ehooi, @unknown - Sanbumi trend remained intact since the article was shared (during consolidations while major trend is uptrend). It is moving up from an oversold region and it will challenge the resistance of 0.365. Going above 0.365 with high volume indicates breakout attempt. Buying or adding positions now will not change the support at 0.30/0.365. You can use the levels to determine your risk/reward ratio.
ReplyDeleteGood luck and all the best!
Disclosure: I am still holding Sanbumi and have been adding positions during the consolidations phase. The information in this page is for sharing purposes and please do your own due diligence before taking any positions.
For existing readers:
ReplyDeleteSanbumi is still a HOLD for now as it is in consolidation sideway. While daily chart showing profit taking, weekly and monthly chart is still a hold. Unless Sanbumi closes below 0.33 cents, 0.30 remained as support and the trend is still intact.
For new readers:
You can use 0.30 as the support level and risk reward ratio to determine your entry. Do identify your objectives and rate of returns prior to entry and follow through it along the process. Once you have entered a position, what is left is following through your objectives.
Good luck and all the best!!!
Noted, still Hold.Thanks for advise.
ReplyDeleteHi Readers,
ReplyDeleteSanbumi continued to retrace with lowest of 32 cents. Support or stop loss level remained at 30 cents and immediate resistance is at 0.365. Failure to break above 0.365 with high volume or rebound to 0.365 with low volume represents bear gaining strength.
Please do not hesitate to initiate stop loss if it triggers to protect your capital.
Disclosure:
I am still holding Sanbumi and has been averaging down to below 0.365. My stop loss level is at 0.30 cents.
Hi Readers, watch for Sanbumi support at 30 cents. If it is broken, do initiate stop loss to protect your capital.
ReplyDeleteHi Readers,
ReplyDeleteThank you for the call and messages. I am happy that you are earning. Your patience finally paid off. Sanbumi closed today at 0.37 cents with high volume. Its a breakout. If it stays above 0.365, you can use this level as your support.
If you are satisfied with your gains (ranging from 8 to 14%😊), please do not hesitate to take profit as this is a trading counter.
I will stop providing commentary on this article to focus on other counters. You can use the levels above (in the chart) and please do not hesitate to contact me at acc.alphapatterns@gmail.com if you need further advise on Sanbumi.
Good luck and all the best!!!