Ooo ..... realised that I did do an update on MPI

......

consolidation/puullback did happen but certainly not what I was expecting.....



definitely got it so wrong............................

Cup patterns ......

1. Prefer Cup & Handle over Cup. Cup by itself, is prone to failures.

2. Cup & Handle... biggest problem is most fail because their eyes only see what they want to see..

Example...




Looking nicely like a 'cup' yes?

Left of the cup.... high volume
Middle of the cup.... low volume
Right of the cup... high volume...

all a ok?

the next trading day.... 7th Aug



Stock shoots up early.... nice volume.... hits the high .... but end the day very poorly.......

and the rest is history... look at how the stock is trading now....



Well? On Cup and handle, the buy point is just when the stock breaks oiut of the handle.......

trading the stock based on this setup would have hurt badly (hopefully a cut loss was done) ......

but what went wrong here?


Answer? The handle. There was no handle........


so the failure was not the cup and handle pattern but the failure was due to the assumption that this was gonna be a very sweet cup and handle play...

NIO huh?

Big winner....

Considering the stock is less than 2 bucks not so long ago..... and it's now 28.48?

Ok... stocks like these.... if for me .... la....

this is what my thinking process.....

1. My main worry of course is the climax top, ya. It has gain a lot from where it started and obviously, nothing shoots straight up forever.
But so far it looked good...



lot's of consolidation area.... but that period .. after the run up on the 29th Sep, just before 14th Oct .... it's actually nail biting time....

it was consolidating at the top....

for the opportunist... it's basically base building at the top... and any potential breakout would be explosive.....
for the safety first (or pessimistic) .... it could be a sign the stock might have peaked...

well no matter what the stock was either waiting to breakout or breakdown.....



..... and breakout it did.... a massive breakout too....

which left us to where we are.....



the very first thing top pop up is..... hey, the stock is rather extended. Trading is now above it's previous upper trend line..

The pessimistic view..... since this is one of the age old indicator that suggest that it's okay to take the profit after the massive run up..... and the last two days has suggestion that stock is losing momentum and perhaps the stock could consolidate below the trend line....

the ever opportunist view ....everything is okay. the stock is merely consolidation ONCE more and that a new higher trend line could be form in the near future.

how?

if it is me... i might hold..... and watch ... and use 27.50 as the cue to get lost.



p/s good pick and yeah, I think this company got very good potential....

Cup and handles are just patterns formed in the chart. It has nothing to do with fundamentals of the company.

And you should know, charts can be manipulated.

I wouldn't

well.... it's gobbling up the real estate out there......

Looking for real estate ....

New high ....






but .... there's a lot of real estate to cover before it can challenge its all time high of its gogo 2000s......

I wasn't around at that time but am lucky to be told about its glories and of course the horror stories that came with the 'sudden' drastic plunge. And the thing that stood out the most was when the plunged happened, the earnings was actually still very good for Unisem and MPI. And of course, not surprisingly, many failed to 'let go' of the past. ie when MPI crashed, heard many went bargain hunting/buying at so-called supports (supports which never hold. Yeah, makes one wonder, what the point of buying at supports... and yeah... some kena suckered cos they stated using value theories when MPI was around 30 (after crashing from 60s) .... )

Yup, lucky to be taught some precious lessons ...

In a mania, many really fall in love with the stock... not realising the stock is merely a stock and clearly it will never love us back.

Hehe.... I was really a social distancer ... for not replying you properly....

in all honesty... try not to 'look' for cup and handles setups... they are tricky and it's so easy for us to make mistakes....

Your chart, once more ... did some labelling...



A = left side of the cup... (I placed the A lower so can see clearer)

in a C&H .... one should look for volume that drives the stock to A (the left side of the cup) .... the volume must be there.....

in Greatec, the higher volume occurs after A ....

the bottom of cup (oops I did not label) .... as we go down the cup to the bottom of the cup, we want to see diminishing volume.... volume should be tapering off ... and here, we don't see that in Greatec.

the right side of the CUP ... ah... this is ok... the return of higher volume which drives the stock to the same level as the left side of cup... 'check' , this is OKAY for Greatec....

the last part.. ... or the handle.... for Greatec, imo the handle should see the stock consolidate to 6.60. We did not see a clear forming of the handle.

The buy point.... C .

YES, C is the buy point. There is good volume... and the buy point should be around 7.10.

That's my interpretation and it is also why I wouldn't call this C&H.


pst... the buy point and the low point of the handle.... can u accept meh? if can get 6.60 or 6.70, why wait for 7.10? LOL!

Fuyoh! You certainly have been taking loads of notes. In fact, I am supremely impressed!


Many a times, a 'V' or 'U' is easily formed on the charts...

stocks shoots up/pumped up/goes up ..... pulls back/consolidates ..... and then after shaking out the weak holders, it resumes it's uptrend.....
then ... many will start seeing what they want to see .... (the craftier small time hustlers (or what not) will sense that this is a time to seduce punters back into the stock by the suggestion of the possibility of C&H ) ...... and yeah.... sometimes the slightest mention will indeed will send the stock higher....
fulfilling the claim of the C&H play was successful ...... everybody is happy.... lol .... C&H play mah.... stock went up... everyone's happy.

but many times it will fail.... if the 'hustlers' hand is not strong enough to maintain the stock momentum or the stock itself does not have a sexy enough story to sell......


just be warned... setup based on C&H tends to fail because of error prone in properly identifying the C&H ....

for example... CUP without handle setups also exist... and such setups is even more prone to pattern failures.....





This post has been edited by Boon3: Oct 21 2020, 01:44 PM

btw.... you can save whatever lines you draw on the chart.... do that ... and over time... you can view back and compare what has transpired since you drew those lines....

YES !!!! It happens.....

but yea.... remember..... sexy story first.... then only the chart.

Hope you are okay....



Did you ..... ?

here are the comments....

1. The long candle on the 15th, on heavier volume.

* it's okay but considering where the stock was less than a month ago, perhaps it's time to be on the lookout on possible signs to sell for a profit. Yup, not a sell yet but it's suggesting that perhaps one should consider counting the money .... *

2. 20th Oct.... stock hit the highs of 2.70. Considering the fact on 11 Sep the stock could be purchased at 1.70....

The stock rose but volume was poor and the stock reversed to close slighty lower at 2.60.

* stock was hitting new highs but since the 15th, daily volume declined.... a good sign that perhaps the stock had peaked (* for now?*)

would you sell for a good profit? Well, if this stock wasn't in my blacklist, I would definitely have considered selling for the profit...

3. consider the 'so called' sexy story that drove the stock higher... what was it? Lower margins would be bringing in big profits hence driving the stock higher..

* but as a blacklisted stock ... if I am not mistaken, this lower margin thing isn't really new. It's been around for many months already and by right it should have reflected in LCTitan books already .... but it hasn't. LOL! Yup, it has never fail to disappoint. Now the next QR report should be released soon. Reflect this on the recent share price movement.... stock has been rallying so strong recently... but as the QR release date nears, the stock is now taking a massive correction.

How smelly is this? Well... let's wait and see the QR .....

.... and the market is jumping on this fish breakout




* oh... and I do remember how KN gave rocket numbers but only gave a TP of 2.50 for fish

Ooooo..... Unisem reported a great set of earnings.

The turnaround story for 2020?

* The earnings recovery isn't too big of a surprise cos once the loss making asset is out of the books, Unisem should be churning in decent profits again....

The risk of betting on QR results.

Many do it. They think the can guess the results. They also guess they can get the market reaction right.

Not so simple.

Ps.. Me no follow this one.

What's that to be confuse?

It's actually very simple....

All shares can be fried.

There end. Habis cerita....