It was a bullish day for Malaysia ‘s stock equities market. The benchmark index, FBMKLCI returned above 1,500 marking whereby it added 17.55 points to close at 1,507.69 today. Market was in a chaos as Glove companies were encountered panic selling after the margin capping for rubber stocks have been tightened by several IBs and brokers. Continue reading Don’t Miss Out on All These Calls Anymore!
We have noticed some selling pressure on gloves stocks and investors/ traders will be asking “What’s next?”.
Hence, we are here to provide you with a list of trading ideas. They are backed by decent thematic storylines and potential forming a recovering/ uptrend intact pattern over the near term. Most importantly, we have seen a fair amount of trading interest within these stocks.
Some trading catalysts that persisted in the market so far would be
- Firmer Brent oil prices above USD38 (refer to figure 1 below)
- Ongoing NFCP/ 5G implementation
- Large Scale Solar (1000MW bidding period started since 31st May 2020 )
Hence with the above mentioned trading themes, we present you with the M+ Wiz list for this week.
- Telco (ongoing NFCP/ 5G implementation)
Do note that all the above stocks are screened based on technical analysis viewpoints and trading span for the stocks should be within 5-10 trading days as we believe trading interest amongst sectors will be rotating frequently. Enjoy your trading !
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
Quarterly Report announced on 05 May 2020 Continue reading Started from the ‘bottom’, now we’re here
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:
- M+ Wiz: of Momentum and Swings (HEXZA was trading at RM0.835) https://mplusonline.blog/2020/04/27/m-wiz-of-momentum-and-swings/
- Create An Edge for Your Trading (HEXZA was trading at RM0.94) https://mplusonline.blog/2020/04/29/create-an-edge-for-your-trading/
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.
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.
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.
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.
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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.
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
3. Tick the preferred rules
4. Save settings
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.
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)
Example 2: HEXZA (3298)
Example 3: DUFU (7233)
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.
In summary, our trading entry for Resistance – Breakout with High Volume can have a higher probability if:-
- High volume transacted on breakout
- Price been consolidated near resistance before breakout
- 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!
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Are you still missing out on our highlighted stocks on M+ Wiz? IQGROUP is up by 34.9%! Continue reading M+ Wiz: of Momentum and Swings
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.
How ADVENTA is being spotted on our M+ Wiz and under what criteria that it is identified as a high probability trade?
“BUYERS INTACT” detects the stocks that are moving on an uptrend and continue to trade higher.
Some examples of triggered stocks are as below:
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:
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?
ADVENTA presented a good trading setup as it met following conditions on its 30-min chart:
- Price is going on an uptrend
- Rally in price comes along with the uprising in trading volume
- Mild profit-taking during the previous day afternoon session
- Retracement in the rally comes with a lower volume
- 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!
REDTONE (0032) opened gap up and shot up to intraday high of RM0.495 today. For those who been followed us on our Facebook, this stock is mentioned during our Facebook Live session on 20th April and in our Facebook post on 22nd April 2020. Continue reading M+ Wiz: REDTONE
How can M+ Wiz actually help you? To help you understand, what better way than to show you the performance.
Over the span of the past two weeks during our MCO, we tracked the performance of M+ Wiz. Here’s how the stocks that we saw in M+ Wiz performed. Continue reading The Power of Wiz: Stock Recap