MTDACPI Trade 06 Oct 10

MTDACPI Weekly Chart 06 Oct 10

Stochastic oscillator (13, 3) showed MTDACPI weekly momentum was bullish from w/e 24 Sep 10. MTDACPI has corrected 78.6% of its price advance from the weekly low of w/e 27 May 10 to the weekly high of w/e 23 Jul 10 r. MTDACPI trend was expected to be bullish.

MTDACPI Daily Chart 06 Oct 10

MTDACPI made a daily momentum bullish reversal on 01 Oct 10 after correcting 61.8% of its advance from the daily low of 8 Sep 10 to the daily high of 22 Sep 10. The high of the 01 Oct 10 daily candle was taken out on 04 Oct 10 giving a buy signal but I only entered on 06 Oct 10 at 50 sen.

The good thing about Bursa Malaysia stock is that it is not too volatile like FOREX. We can afford to wait for a day or two after the buy signal was made.

Learning from Robert Miner’s book High Probability Trading Strategies, I bought enough MTDACPI shares to allow me to exit my position in stages. The first unit is called the short term unit. It is usually exited fairly quickly for a relatively small profit once the minimum target is reached. The second unit is called the long term unit. The long term term unit is intended to capture the longer term trend.

MTDACPI Daily Chart 15 Oct 10

I sold my short term unit on 15 Oct 10 at 58.5 sen for about 16% gain following a bearish engulfing reversal candle on 14 Oct 10 and after the minimum target 50-61.8% retracement of the decline from the daily high of 23 Jul 10 to the low of 8 Sep 10 was reached.

MTDACPI weekly chart 19 Oct 10

The long term target based on weekly chart is 73-75 sen. The long term target is based on:

1. 78.6% correction from the weekly high of w/e 14 Aug 09 to the weekly low of w/e 27 May 10 .

2. 100% Fibonacci projection of the advance from the weekly low of w/e 27 May 10 to the weekly high of w/e 23 Jul 10 projected from the weekly low of w/e 9 Sep 10.

3. 127% external retracement of the decline from the weekly high of w/e 23 Jul 10 to the weekly low of w/e 09 Sep 10.

Will MTDACPI advance to this long term target? I do not know but I still have my long term unit just in case.

Disclaimer:

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.