Posted on

Big rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

Warrants Commentary (12 May to 15 May)

Last week, trading in the Malaysian warrants space saw significant improvement, surging 53.5% week-on-week (w-o-w) to RM389.0mil although the Bursa Malaysia only opened for four days as it was shut on Monday (11 May) for the Nuzul al-Quran holiday. Interestingly, warrants over the Malaysian shares were in the spotlight as its trading value spiked 139.8% w-o-w to RM242.8mil, making it the major contributor to last week’s overall warrants turnover. Meanwhile, trading in the Hang Seng Index (HSI) warrants were less active last week, representing 26.1% of turnover, followed by the FBM KLCI (KLCI) warrants which made up approximately 6.9%.  Continue reading Big rally in glove makers; TOPGLOV-C73 and KOSSAN-C6 in the spotlight 

Posted on

Revisiting G-Love

After a long weekend break, the KLSE market is actively traded on Tuesday with a total traded volume of 6.392 billion. Healthcare sector attracts strong trading interests, notably Glove Manufacturing companies. Among the top 10 gainers, 6 of them are Glove Manufacturer (TOPGLOV, COMFORT, RUBEREX, SUPERMX, KOSSAN and CAREPLS) Continue reading Revisiting G-Love

Posted on

HSI-HAF sustains top position amid holiday-shortened week

The first week of May saw a slight climb in warrants trading activity despite it being another holiday-shortened week as the Malaysian market was closed on Thursday in conjunction with Wesak Day. The total warrants turnover for the week came in at RM257mil, which represented a 14.1% rise compared to the previous week, with warrants over the Hang Seng Index (HSI) taking the top spot with RM111.1mil traded, making up 43.2% of the total warrants turnover, followed by warrants over shares which made up approximately 43.1%, while warrants over the FBM KLCI and S&P 500® Index (SP500) together constituted approximately 13.7%. Continue reading HSI-HAF sustains top position amid holiday-shortened week

Posted on

Limit Up on HEXZA (3298)

Congratulations for those who traded HEXZA and made profits! HEXZA (3298) has gone limit up, added 29.5 cents to close at RM1.21 on Monday. This stock has been mentioned previously in our posts, and alerted on our M+ Wiz trading system as well.

To look back or find out why HEXZA is selected, you can refer to our previous post as below:

HEXZA was alerted at 9.02AM

HEXZA was again alerted on M+ Wiz today, triggered the rule [TREND] Buyers Intact, 2 minutes after market opened. We believe the surge in the company share price is likely due to the increased trading interests on companies in chemical industry. This comes amid the high demand of sanitisation products for disinfecting the properties and premises before re-opening for business operation.

On Friday, Prime Minister Tan Sri Muhyiddin Yassin spoke on the easing of restrictions in which a number of activities were allowed to resume today under a conditional Movement Control Order (MCO). It is a must to follow standard operating procedure (SOP) issued by the ministry.

HEXZA CORP BHD’s principal business is in the manufacture and sales of formaldehyde based adhesives and resins for timber related industries, ethyl alcohol, natural vinegar, cooler, liquefied carbon dioxide and kaoliang wine.

Resistance Breakout upon opening in HEXZA

Alert on HEXZA is identified to be a high probability one as:

  • Point 1: Resistance Breakout on 30-minute chart after the price retraced from the high on Thursday
  • Point 2: Little volume transacted during price retracement which indicates absence of profit taking
  • Point 3: MACD crossed above its 9-days Signal line. An indication of potential buying momentum.
HEXZA is alerted again during afternoon session

Wiz was able to identify another good probability setup for HEXZA during afternoon session. HEXZA was alerted twice as the price broke above the intraday resistance and morning high after consolidating near top. Volume transacted during the consolidation retracement was low which indicates a healthy pull back and a potential upward continuation when the price breakout happens with strong volume.

What’s next?

HEXZA’s share price is hitting its all time high at RM1.21. However, the indicator Relative Strength Index (RSI) is showing Overbought signal which indicates a potential limited upside. Share price might continue to rally higher, but it is advisable to take profit swiftly to avoid being caught in the potential near term retracement.

HEXZA share price continued to go higher and hit upper limit of RM1.21 during afternoon session with strong volume. On the 30-minute chart, we do not see any retracement take place to digest the surge. If the share price retraces back to 20-days Moving Average with a diminishing volume, the buying pressure is likely to stay intact and continue the upward trending.

However if the share price continues to surge higher and moves further away from the Moving Average lines, short term traders can consider to take profit on a technical overbought. Traders can use RM1.30, RM1.40 and RM1.50 as the immediate resistance for short term trading.

 

If you enjoy our articles and would like to show some supports, please Like and Share the article  on Facebook.


Like and Follow our Facebook Page to get more updates and upcoming events!

Posted on

Warrants market winds down for long weekend

The last week of April saw a slowdown in warrants trading activity ahead of the long weekend. The Hong Kong market was shut last Thursday for the Birthday of the Buddha i.e. no market making for warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF, while both the Malaysia and Hong Kong markets were shut last Friday for Labour Day. Average daily turnover for the week clocked in at RM57.9mil per day, a dip from the previous week’s RM83.6mil, with warrants over the HSI taking up 50.5% of total turnover for the week despite the additional day off. Continue reading Warrants market winds down for long weekend

Posted on

Create An Edge for your trading

29th April 2020

Many have a misconception that trading is as good as gambling, as traders are betting their money on an unpredictable outcome. Yet, one thing that they do not know is in trading, a trader able to study and makes strategies to increase their winning edges. So, what is your winning edge in this trading game?

M+ Wiz can be your edge in trading if you able to learn, study and fully utilize the tool. In M+ Wiz, there are more than 10 rules which cover both bullish and bearish triggers. For beginners, it is recommended to focus and stick with a few rules first. One that we are going to cover in today’s post is Resistance – Breakout with High Volume.

Resistance Breakout with High Volume on ASTRO (6399), on 27th April 2020

Before going to that, below are some Simple Steps to Configure the Alert List based on own preferences:

1. Select Alert Settings

2. Decide on price range for alerts and Apply

Example of price range between RM0.20 until RM5.00. Only stocks within this price range will appears on Alert list.

3. Tick the preferred rules

All the bullish rules are ticked except for RSI buy rules (RSI Oversold – Cross below 30)

4. Save settings

Save the Alerts setting so that only the ticked rules appear every time when launches the M+ Wiz

Rules: Resistance – Breakout with High Volume

What is Resistance?

Resistance, or a resistance level, is the price point at which the rise in the price of an asset is halted by the emergence of a growing number of sellers who wish to sell at that price.

By Investopedia

It is quite logical to purchase a stock when the number of buyers have overtake the number of sellers who sold their shares at resistance level. However many encounter issues such as buying the resistance false break, or the momentum didn’t follow after the breakout. Here comes million dollars question: How to select a high probability resistance breakout?

One of the important criteria is the Volume Transacted. Volume represents the buying interests. When the price breakout happens without a strong volume, the buying interests can be weak thus lead to a weak momentum or even a false break. Therefore, our M+ Wiz’s trading rules have filtered on this aspect and only identify the Resistance Breakout with High Volume.

Both breakout came with a significantly higher volume in comparison to previous day.

Besides Volume Transacted, another criteria that increased the winning probability of breakout is Price Consolidation at resistance. If share price able to consolidate near the resistance level before the breakout, the breakout is likely to be genuine and strong. It convinces the market that the breakout is valid as buying interests is strong enough to keep the price consolidates at the resistance, rather than strong selling pressure rejection from resistance.

Example 1: ASTRO (6399)

Price has been consolidating near resistance before the breakout

Example 2: HEXZA (3298)

Circled shows the price stalled near the resistance before the breakout

Example 3: DUFU (7233)

Squared box shows the consolidation near the resistance level

Example 1: ASTRO illustrated a consolidation near resistance at RM0.88 area, and bullish signal came in amid the breakout with Marubozu bullish candle.

Example 2: HEXZA which is alerted earlier on [Trend] Support Rebound, made consolidation near resistance of RM0.845. Buying momentum kicked in as the breakout came in with high volume after the consolidation, spiked more than 5% within a day.

Example 3: DUFU has been consolidating at the resistance and had a false break earlier. Yet, the price continued to consolidate near resistance and made second attempts of breakout. This breakout stands a better winning probability due to a higher volume transacted which shown on Box 1 and Box 2.

 

Last but no least, the probability of winning will be increased if the entry comes amid the MACD is above center line. MACD indicates a positive momentum and trend when it is above the center line.

MACD is above center line, also known as zero-level

In summary, our trading entry for Resistance – Breakout with High Volume can have a higher probability if:-

  1. High volume transacted on breakout
  2. Price been consolidated near resistance before breakout
  3. MACD is above center line

Hopefully with these sharing, it helps and improves the winning rate and creates an edge in your trading! If you enjoy reading this, please like our post on FACEBOOK to encourage more similar postings in future!

Do LIKE & FOLLOW us on our FACEBOOK PAGE to get more updates and information!

Posted on

Warrants turnover spike 40% amid volatile markets

Overall markets remained volatile last week as the world is still battling the coronavirus outbreak which has negatively impacted economies across the globe. Recently, China recorded the biggest decline in its 1Q20 gross domestic product (GDP) in decades as the country’s economy slumped by 6.8%, mainly dragged by the pandemic. The International Monetary Fund (IMF) projected that global GDP will shrink 3% this year – compared to its pre-pandemic prediction of a 3.3% expansion. The economic contraction may continue into 2021 should the coronavirus continue to linger, marking the deepest dive since the Great Depression (Bloomberg, 14 Apr).   Continue reading Warrants turnover spike 40% amid volatile markets

Posted on

M+ Wiz: Getting the Right Trigger

ADVENTA (7191)

ADVENTA (7191) appears to be one of the outperforming stocks that alerted on M+ Wiz today. It was triggered at 9.12AM this morning when the stock was trading at RM0.755. ADVENTA went as high as RM0.975, and closed at RM0.915, with 20.5 cents/28.87% added for the day. 

240420_ADVENTA

How ADVENTA is being spotted on our M+ Wiz and under what criteria that it is identified as a high probability trade?

[TREND] BUYERS_INTACT

“BUYERS INTACT” detects the stocks that are moving on an uptrend and continue to trade higher. 

Some examples of triggered stocks are as below:

TOPGLOV (7113)

240420_TOPGLOV

OCNCASH (0049)

240420_OCNCASH
CAREPLS (0163)

240420_CAREPLS

BUYERS INTACT will be triggered when the price traded higher, mostly active during the morning session. This strategy is suitable for momentum traders and scalpers who trade along with the continuation rally in the share price. 

However, we will need to be aware and also to avoid some of the false alerts triggered. False alert normally happens on some illiquid counters where it meets the algorithm but difficult to trade and sustain the momentum. Examples as below:

GOB (1147)

240420_GOB

PEB (5622)

240420_PEB

Tricks to select good setup for BUYERS INTACT

In our previous post, we illustrated simple steps to identify high probability trade setup for REDTONE which shot up 32% higher! How about the credentials to identify a good setup for BUYERS INTACT?

Example: ADVENTA

ADVENTA presented a good trading setup as it met following conditions on its 30-min chart:

  1. Price is going on an uptrend 
  2. Rally in price comes along with the uprising in trading volume
  3. Mild profit-taking during the previous day afternoon session
  4. Retracement in the rally comes with a lower volume
  5. MACD crossed/bounced from its 9-days signal line which indicates momentum

If we look into examples above (TOPGLOV, OCNCASH and CAREPLS), we can find similar setup and criteria on the chart. You can find more from our M+ Wiz chart in our platform too! Trading will be easy once we are able to crystalize and identify our high probability trading method.

Hopefully, this will be useful and helps during your trading! Like and Follow us on Facebook to enjoy more information and updates!