Technical Analysis Of Carimin

In this article we will seek to analyze the price of Carimin through technical analysis. Do note that I will not be looking at the fundamentals. So you will have to study them yourself and complement it with the technical analysis contained here.

February 12 2019

In just about 10 days the stock has climbed up drastically. I like to use the measured move as a potential target. As you can see in the chart below, the stock has more than met its target for this round of breakout.

Targets are just targets and a hot stock usually rises and rises and go beyond the initial target. Which is why if a stock is in a confirmed uptrend, one can be a bit slow to sell. Trader management such as selling 1/3 or 1/2 are keys to capture such profits. Plus one could also use the 60 min chart for better timing.

Since the stock is still in a daily uptrend and still trading above its rising daily 20 MA and 50 MA, one can continue to expect the stock to continue to go higher.

It will either:

  • Correct (buy the dips)
  • or Trade sideways before breaking out (buy the breakout)

This is the way to make money in an uptrending stock for traders. Investors are usually in long time ago.

The heavy volume above shows there is buying interest. Either from investors or from traders.

Let us now examine the stock in the 60 min chart now. As you can see from the chart above, the stock is also in a nice 60 min uptrend with price trading above its rising 60 min 20 MA and 50 MA.

There are a few breakouts with the latest one yesterday.

A stock trending strongly in the 60 min chart will rarely drop below its 60 min 20 MA and 50 MA. Therefore a short term trader should be careful every time it drops below the 60 min 20 MA. If it drops below the 50 MA, chances are there is a correction coming either by a sideways trading or the painful correction by trading downwards to support.

Last of all, let us study the weekly chart again. The stock has certainly gone up quite a lot since December 2018. Right now it is at an important resistant area. This resistance area and also the psychological $1.00 area will perhaps provide some challenge to this hot stock.

Therefore one should start to expect some sideways consolidation. Does not mean it won't shoot pass this area but one should not forget important resistant areas. I do believe some sideways trading would be good for the stock as well. That way it can breakout higher later and make new all time highs.

If it makes new all time highs then we can expect the stock to move higher and higher until it does not want to go any higher.

February 1 2019

A look at the daily chart tells us that it is in a nice uptrend. Reminiscing me to the days in 2017 of what the Dow and S&P looks like. LOL.

Whether its a Malaysian stock or a US stock or index, the principles are the same. Indexes and stocks that are above their rising 20 MA, 50 MA and 200 MA are in an uptrend and will most likely continue to go higher until it does not want to go higher.

The daily chart of Carimin above shows us the stock had many breakouts. The broke out that ignited the new uptrend was in December 2018. From there it continue to rise giving traders and investors opportunities to participate in its rise. I do see some trade setups but that is a story for another day. 

More appropriate for the Trading Strategies section.

What I am doing here is to analyze the trend and buying interest.

  • Yes the trend is up
  • The stock is healthy
  • Heavy volume shows buying interests and support
  • Its possible to go up more

Investors should look at box 1 and box two that I have drawn. These are support areas. A healthy uptrending stock will rarely drop below its boxes. And it will rarely drop below its rising 50 MA.

So do keep these things at the back of your mind.

Next let us have a look at the weekly chart of Carimin.

The stock is indeed in a nice weekly uptrend as well.

The important area to recognize is the previous high made in September 2018. Previous highs once overcome will act as support. If this stock is any healthy and is to move higher in the long term, it should not drop below this area.

There are some resistance areas which I have highlighted in red. But that should not be a problem as long as the daily uptrend is intact. But I do expect some rise and fall type or if that does not happen it rises and consolidated and breakout higher.

Which does not matter that much for the trader.

Either he buys the breakout or buys the dip. As long as the uptrend continues that is the way to make money trading stocks.

Hope this helps.

Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com

Charts with the investing.com logo are courtesy of Investing.com powered by Trading View

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