ZLBT Chats

Wednesday, April 1, 2009

Re: WCT -can take a look?

--- On Tue, 3/31/09, ABCD wrote:

Subject: WCT -can take a look?
Date: Tuesday, March 31, 2009, 2:53 PM

Hi ZL, >>> (ZL's reply in RED)
I has been chatted in ur blog quite some times and very appreciate your kindness as giving BT chatters has a space to do discussion.
TQVM u r welcome friend
Just a short introduce myself ..my trading experience was not really long..and just lately start to learn the TA..I have drew a chart for WCT..may u take some of your precious time to comment it??

Thanks in advance..my yellow dot line is descending triangle --> is it correct? CORRECT
The blue line is a immediately resistance (coz gap down on 7 Jan 09) ..so the gap can be drew as future resistance right? A gap is always a support / resistance depending on the prices of that issue. Correct again

The doji was formed on 27 March..is it should be northern doji? 27th Mar is Friday or profit taking (PT) day. A follow-up doji formation is not an option but the norm - nothing unusual there.

*Regarding this i have done some researched..it say "If you see a doji at the top of a rally (Northern doji) or at the bottom of a decline (Southern doji) then there is a chance that the market would reverse or enter a sideways movement for a while. You may therefore consider exiting or partially exiting your current position." ZL agree partially with but not entirely becoz u r refering to a stock price from 0.93 >>> 1.18 and spreaded over 18 trading days which in ZL's opinion is a price "reversal" rather than a rally and in all probabilities due to better sentiments in Wall St. (DJIA) the last 2 weeks. But still some profit takings after a @25sen gains for a pennystock can be considered under any circumstances - which is most likely what WCT trading-buyers are doing these few days.

2. The bollinger band also getting very narrow??As this chart, should consider it as current BB is the trigger to watch for a price breakout or breakdown? As mentioned earlier some PT by traders and some contraction by BB after a 25 sen difference (off low) is conservative trading considering the weak sentiments of the local bourse. This is Bukit Kewangan (Bursa) and not Wall St. (NYSE). We do not hv the volumes that is needed to sustain. Therefore, in ZL's view, is the main reason for that doji u mentioned above.

Nevertheless, the BB is also consolidating - which usually happens after the prices recovered somewhat. WCT candles is positioned LOWER BAND and any price improvement will be hindered or obstructed by the Middle BB which is always the immediate resistance if you select this indicator.

3. Stochastic is heading to south which showing profit take? but if profit taking then price should be drop alot but it is trading side way..so, how to read it?? This is where the stock showed it's ability to absorb distributions. The lower volume can affect the stoch in some ways especially during profit takings. No big deal .

4 For the MAcd, it seems trying to heading +0 zone..but histogram is red..So, my overall conclusion for this stock..it is stay aside and wait the clear direction such as the MACD and the BB showing is expanding either up or down? Kindly please comment...The BB will expand upon more activities in this stock or else BB keeps contracting until something happens here. The sentiments will depends where the BB is still contracting and most likely in a narrow neck or channel formation after candles sits >>> aboce or below the Middle Bollinger. MACD is the slowest of all indicators but sensitive no doubts. The profit takings from 27/3 and the 16+ pts loss by KLCI the following Monday inevitably affect the MACD a little sensitively. This may be due to the big red bear which caused many stocks to dive on Monday.


ZL have included 2 WCT charts below - a daily & a weekly for your perusal ....

In both charts ZL did not use any Bollinger Bands. THis is to highlight >>> THERE ARE MANY WAYS TO SKIN A CAT
Take a closer look at the moving averages parameters defined.

Can you get a different "FEEL" in WCT now?

They say " A picture is worth a thousand words" So 2 pictures worth 2 thousand words lah??? TQVM >>> HAPPY TRENDING !!!

No comments:

Post a Comment