Case studies

1)Glomac

I am interested in Glomac because some analysts are recommending it with a target price of about RM 1.50. The technical picture is also good. If you have more FA or TA information on this share, please let me know.

I will track this counter on a daily basis by identifying the likely short-term daily resistance(R) and support(S) price levels from the daily closing price charts to decide what action to take the following day.

Last date    Close       R and S  Price  levels     Comments

19/07          C 1.29           R 1.28 S 1.24           R broken, BOW above S

The comments means buy on weakness above S, because I noticed that Glomac has rebounded from the recent sell-off and the support S looks strong.

I have bought some earlier and will try to protect my profits.

I cannot predict how the prices will move intra-day on Monday.

If the price goes up above R, I will try to buy more but at no higher than eg 5% upper limit price from R.

If the price goes below S, I will consider cutting loss.

I will study the Monday’s closing price chart to identify Monday;s R and S, and see if they have changed from Friday,s levels and plan what to do on Tuesday. I just repeat this process everyday until I am no longer interested in the stock.

This is basically my game plan to trade to keep losses small and try to capture big gains.

The comments are not recommendations to buy or sell. I cannot stop you if you want to follow my plan but you should trade according to your own risk appetite and set your own upper buy limits and stop-loss levels..

22/07 C 1.28 R 1.28 S 1.24 R broken, BOW above S. Hold

Comment is almost unchanged from 19/07 since R and S have not changed. Can still BOW above S. Hold position if already bought. SL, below S.

For all trades, you must set your own upper buy limits and the stop-loss levels.

All the above comments are just my observations. Not buy or sell recommendations

23/07 C 1.26 R 1.28 S 1.26 Hold. SL below S.

S has changed from previous day. Need to prepare to SL if S
breaks down. The price may still be able to go up if S does
not break down.

24/07 C 1.27 R 1.32 S 1.26 Hold. SL below S.

Comment is same as for the previous day.

25/07 C 1.28 R 1.32 S 1.26 Hold. SL below S.

Comment is same as for the previous day.

26/07 C 1.25  R 1.31 S 1.26 Hold. SL below S.

The price has suddenly dropped at the end of the day. I guess many people will lose sleep worrying about whether to sell, hold or buy next week, because they do not know the R and S levels.

Since I know the R and S levels , which are the likely short-term support and resistance levels, I can use them to easily decide what to do.

The price closed below S, indicating weakness.. Some people could have set SL at 5% or 6 sen below S,  at 1.20. I have set my SL at about half of that i.e 3 sen below S or at 1.23. I am holding my positions because my SL has not triggered.

29/07 C 1.24  R 1.31 S 1.26 Stay aside. No buy signal..

30/07 C 1.23  R 1.31 S 1.26 Stay aside. No buy signal..

31/07 C 1.20  R 1.31 S 1.26 Stay aside. No buy signal..

01/08 C 1.19  R 1.31 S 1.26 Stay aside. No buy signal.

02/08 C 1.20  R 1.23 S 1.26 Stay aside. No buy signal..

05/08 C 1.20  R 1.23 S 1.26 Stay aside. No buy signal..

06/08 C 1.17  R 1.21 S 1.26 Stay aside. No buy signal..

07/08 C 1.20  R 1.21 S 1.26 Stay aside. No buy signal.

12/08 C 1.19  R 1.21 S 1.26 Stay aside. No buy signal.

13/08 C 1.20  R 1.20 S 1.18 Stay aside. No buy signal.

14/08 C 1.19  R 1.20 S 1.18 Stay aside. No buy signal.

15/08 C 1.21  R 1.21 S 1.18 BOW above 1.20 if volume increases.. SL below 1.18.

16/08 C 1.18  R 1.21 S 1.18 No increase in volume. No buy signal. SL below 1.18.

19/08 C 1.18  R 1.21 S 1.18.No buy signal. SL below 1.18.

20/08 C 1.15  R 1.21 S 1.18.No buy signal. Stay away…

21/08 C 1.15  R 1.21 S 1.18.No buy signal. Stay away..

22/08 C 1.12  R 1.21 S 1.18.No buy signal. Stay away..

23/08 C 1.10 R 1.21 S 1.18.No buy signal. Stay away..

26/08 C 1.10 R 1.21 S 1.18.No buy signal. Stay away..

27/08 C 1.04 R 1.21 S 1.18.No buy signal. Stay away.

28/08 C 1.03 R 1.21 S 1.18.No buy signal. Stay away.

29/08 C 1.11 R 1.21 S 1.18.No buy signal. Stay away.

30/08 C 1.09 R 1.21 S 1.18.No buy signal. Stay away..

02/09 C 1.10 R 1.12 S 0.98.No buy signal. Stay away..

03/09 C 1.10 R 1.12 S 0.98.No buy signal. Stay away..

04/09 C 1.10 R 1.12 S 0.98.No buy signal. Stay away..

05/09 C 1.10 R 1.11 S 0.98.No buy signal. Stay away..

06/09 C 1.11 R 1.11 S 0.98. Can buy if price goes higher than R and volume increases..

09/09 C 1.11 R 1.11 S 0.98.No increase in volume. No buy signal. Stay away.

10/09 C 1.13 R 1.11 S 1.06.Sudden increase in volume.  R broken. Buy on weakness.

Stop loss below S.

11/09 C 1.11 R 1.11 S 1.09 Hold on to purchased shares.

12/09 C 1.13 R 1.11 S 1.09 Hold on to purchased shares.

13/09 C 1.15 R 1.11 S 1.09 Hold on to purchased shares.

For all trades, you must set your own upper buy limits (about 5% above R)  and also your own stop-loss levels.

All the above comments are just my observations. Not buy or sell recommendations

 

 

 

 

 

 

 

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