20051018 Technical Outlook JetFM
CI broke below support line. Having broken the short term upward sloping support line on the downside on 14/10/2005, CI yesterday continued to trade to an intraday low of 913.65 before closed at 924.27 as traders started to take profit on their stock portfolio amid thin buying support in the stock market. For Tuesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.78 and 931.3; 1st and 2nd support levels will be 922.2 and 920.14.
Chart wise: Traders should begin to work out an exit strategy. After staying above 922-level for 14 days since 27/9/2005 without penetrating 930 on a close basis, CI finally broke below the upward sloping support line as sellers decided to pocket some of the realized profit. Traders should not underestimate this downside penetration pattern, they should instead starting to plan out an exit strategy because ignoring a simple pattern could sometime proved to be very costly at the end of the day. There is nothing wrong to take profit even a small one. In a trading environment, you may see a profit now; but if one is not disciplined enough to do what it ought to be done, the stock price may fall without one even have a chance to realize that. When that happens, a profitable trading stock would end up as a long term investment, one may probably have to wait for weeks to see that kind of profit again. Therefore, with this low settlement level, CI was expected to trade lower again today as more traders become better informed of the market situation. Nevertheless, market should find some buying support as CI draws near to 915. In an analysis of Fibonacci Retracement studies, CI was at 37.4% retracement of a move from 953.88 (4/8/3005) to 906.54 (2/9/2005). At 50% of retracement level, CI would be at 930.21.
Technical wise: MACD line has cut down the signal line from above to emit a sell signal. MACD line fell to 1.22 (17/10/2005) from 1.50 (14/10/2005) with signal line readings also dropped to 1.39 (17/10/2005) from 1.44 (14/10/2005). Traders should therefore be prepared to work out an exit strategy. On Directional Movement Index, +DMI was above the -DMI. On the reading scales, +DMI was at 7, down from 9 (14/10/2006); but -DMI went up to 15 from 7 (14/10/2005). That indicated a stronger selling than buying. ADX inched lower from 30 (14/10/2005) to 29 (17/10/2005), it showed a trendless situation for CI. As for Stochastics, %K line continued to stay below the %D line and was seen getting further away from %D line, a sign of lower stock market. %K dropped to 56.2 from 64.3 (14/10/2005) with %D also fell from 66.9 (14/10/2005) to 61.3 (17/10/2005).
Our stock recommendation for today is:
ACP Industries (Trading Buy) at 67 sen with a stop loss at 63.5 sen.
Chart wise: Traders should begin to work out an exit strategy. After staying above 922-level for 14 days since 27/9/2005 without penetrating 930 on a close basis, CI finally broke below the upward sloping support line as sellers decided to pocket some of the realized profit. Traders should not underestimate this downside penetration pattern, they should instead starting to plan out an exit strategy because ignoring a simple pattern could sometime proved to be very costly at the end of the day. There is nothing wrong to take profit even a small one. In a trading environment, you may see a profit now; but if one is not disciplined enough to do what it ought to be done, the stock price may fall without one even have a chance to realize that. When that happens, a profitable trading stock would end up as a long term investment, one may probably have to wait for weeks to see that kind of profit again. Therefore, with this low settlement level, CI was expected to trade lower again today as more traders become better informed of the market situation. Nevertheless, market should find some buying support as CI draws near to 915. In an analysis of Fibonacci Retracement studies, CI was at 37.4% retracement of a move from 953.88 (4/8/3005) to 906.54 (2/9/2005). At 50% of retracement level, CI would be at 930.21.
Technical wise: MACD line has cut down the signal line from above to emit a sell signal. MACD line fell to 1.22 (17/10/2005) from 1.50 (14/10/2005) with signal line readings also dropped to 1.39 (17/10/2005) from 1.44 (14/10/2005). Traders should therefore be prepared to work out an exit strategy. On Directional Movement Index, +DMI was above the -DMI. On the reading scales, +DMI was at 7, down from 9 (14/10/2006); but -DMI went up to 15 from 7 (14/10/2005). That indicated a stronger selling than buying. ADX inched lower from 30 (14/10/2005) to 29 (17/10/2005), it showed a trendless situation for CI. As for Stochastics, %K line continued to stay below the %D line and was seen getting further away from %D line, a sign of lower stock market. %K dropped to 56.2 from 64.3 (14/10/2005) with %D also fell from 66.9 (14/10/2005) to 61.3 (17/10/2005).
Our stock recommendation for today is:
ACP Industries (Trading Buy) at 67 sen with a stop loss at 63.5 sen.
posted by emacro @ 6:42 PM
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