ZLBT Chats

Wednesday, February 16, 2011

Technical Stock Picks Compilation Table, AIRASIA, UEMLAND

TECHNICAL COMPILATIONS TABLE
The table below is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date.

INTERPRETATION OF TECHNICAL INDICATORS:
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.

14‐day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30‐day moving average should be taken as a bullish move with good short‐term upside potential. A fall below 50 and a simultaneous dip below the 30‐day average is bearish and imply further near‐term downside risk.

Moving Averages: A stock’s short‐term trend is bullish if share price stays above the 10‐day moving average, and bearish if it stays below. The medium‐term trend is positive if share price stays above the 30‐day average, and negative if it remains below. A longer‐term uptrend is intact if share price sustain above the 50‐day average, and is deemed broken if it breaches below this level.

Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI‐, while a negative DMI diff is bearish due to a lower DI+ vs. DI‐ (DMI diff = DI+ minus DI‐). A crossover of DI+ above DI‐ triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI‐. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.

Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12‐day EMA minus the 26‐day EMA) and the MACD signal line (the 9‐day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.
Technical Comments
A fresh stochastic buy signal triggered on AirAsia implies good near‐term upside potential to re‐test RM3.05, the 13/1/11 peak matching the leveling upper Bollinger band, with a confirmed breakout to target RM3.16 (1.236FP), RM3.40 (1.382FP) and RM3.60 (1.5FP) ahead. Meanwhile, the rebound on UEM Land shares confirmed solid support at RM2.65, with immediate upside targets at RM2.99 (1.236F), RM3.20 (1.382FP) and RM3.37 (1.5FP) on further strength.


DISCLAIMER
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to/change without notice. This report is for information only and not to be construed as a solicitation to buy, sell or trade contract/s in any form. ZLBT accept no liability for any direct or indirect loss arising from the use of this document.
You (the reader/s) is wholly responsible  for your action/s.
Thank you.

HAPPY TRADING

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