Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Saturday, November 15, 2008

5056 ENGTEX / 综合指数 2008年 11月 14日 / Composite Index 14/11/2008

5056 ENGTEX By Zhuge Liang

Bollinger Mid Band & Rising Volume Support
#1 Bollinger Middle Band : ENGTEX prices breakout Bollinger Mid Band in late Oct 08 and stayed consistently above, Therefore the Mid BB act as the immediate price support. Next support seen @83 sen.

#2 Rising Volume : ENGTEX prices consistent with the rising monthly average. The present traded volume is only about 50% of the price drops further 2 months back. Any additional volume will bring prices to immediated target 93 sen. Next target seen RM1.00

MACD & Stochastics : Faltering somewhat due to weak mkt sentuments but neverheless still in bullish mode.

What went most unnoticed about ENGTEX prices are the obvious support off low prices.

How many RED candles do you see from the ENGTEX charts for the past 10 sessions? NONE ..... therefore supporting ZL's observations in the stock low prices support. Whenever ENGTEX open below previous closing price, buying support prevent any severe price discrepancies in this stock. Since Red candles denote bearishness, what about ENGTEX's greenies? Naturally it is a healthy issue.

Support...............0.83 / 75 / 70
Resistance.......... 0.95 / 1.00 / 1.20

Cutloss................ 0.68 sen

Target................. 0.93 / 98 / 1.18

Recommendations : Buy on dip towards target 1.00 >>> 1.20

综合指数 2008年 11月 14日 By Zhuge Liang


如图所示,布林频带(Bollinger Band)收窄23%,这表示综指目前依然是处于一个横摆巩固的格局里。一般上,综指将继续的处于这巩固的走势,直到布林频带重新开始打开为止。




Composite Index Daily Technical Analysis 14/11/2008 by Zhuge Liang

As indicated by A, the KLCI tested the 887 WinChart Automatic Fibonacci Retracement on Friday, but failed to break above the 887 level, and therefore, the 887 resistance remains intact. Support for the KLCI is at 800 Fibonacci Retracement, while the T2 line is the dynamic support for the KLCI.

As shown on the chart, the Bollinger Bands Width is still contracting (-23%), suggesting the KLCI is still in its consolidation stage. Generally, as the Bollinger Bands Width contracts, the market direction is unclear. In other words, the KLCI is gearing for a new direction, and the new direction shall be revealed once the Bollinger Bands Width re-expands.

As indicated by B, total market volume increased 18.6%, with the volume returned to above 40-day VMA level. This shows that the market participation is still at a healthy level.

As circled at C, the Stochastic breaks below 30% level by margin, suggesting the KLCI is turning weaker. But since the Bollinger Bands Width is still contracting, the signals from the secondary indicator are usually less significant.

In short, the KLCI is still at consolidation, while preparing for a new move. Generally, the longer the consolidation, the expansion of the Bollinger Bands Width signal would be clearer, thus producing a more precise signal for the new direction.


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