Technical Analysis Of Dayang

So a friend asked me if Dayang will continue to go up. I guess many are wondering the same question as well. So let's take a look at what the charts are saying.

22 March 2019 Friday

19 March 2019 Tuesday

After falling below the 60 min 50 MA, this stock continued to sell off down to the next support area.

If you have read my commentaries on this stock yesterday you will know that the 60 min uptrend of this stock has encountered some weakness. Today it fell even more.

A stock does not go up forever and therefore a nice trend following method should be able to get you out when the trend starts to weaken. 

With the stock now below the 60 min 20 MA and 50 MA and just had a bearish cross today, I believe the trading will be quite choppy from now on.

A stock that is strong and in a nice uptrend will rarely fall below the 60 min 50 MA. That is what Dayang has done for quite a long time. 

Do read the annotation above in the chart for more details.

18 March 2019 Monday

15 March 2019 Friday

13 March 2019 Wednesday

12 March 2019 Tuesday

11 March 2019 Monday

6 March 2019 Wednesday

Dayang had a wonderful run. But do take note that the measured move target has been met. That does not mean that it will go down but the risk to reward now for traders to enter is not very good.

The above is the daily chart of Dayang. After gapping up, it formed a pennant and continued to move higher. If you take the measured move, then the target is met and has done its job very well.

The 60 min chart shows how continuation pattern can be beneficial to traders. The day it gap up, there was no sign of an obvious pattern. But as the next few trading days take place, it slowly formed a continuation pattern in the 60 min chart in the form of a pennant.

From there the stock shot up higher.

Right now, I do not see any continuation pattern yet. So be patient and wait for the next entry.

Continuation patterns are such as :

  • pennant
  • ascending triangle
  • symmetrical triangle
  • flag
  • boxes
  • well maybe you know more LOL

So only when you see these pattern then you can take the trade intelligently.

Hope this helps,

Happy trading!

25 February 2019

For some reason this stock is the hottest stock in KLSE today.

For many the question is: To Buy Or Not To Buy, That Is The Question.

Well, when it comes to trading or investing, the most important thing is not to be influenced by anyone but to consider whether the stock suits your investing or trading criteria. If you buy because its hot then you are in trouble.

If you do not see a setup that you are comfortable with then it is not a buy for you. It may be a buy for others but not you.

With that in mind, let us now move into the daily chart of Dayang.

From the chart, we can see that this stock has gone up quite a lot from the bottom. Today it gap up and went up by 28%. Quite an impressive feat for a day.

Since the stock has gone up a lot:

It is not a bottoming play, but rather we must NOW treat it as a continuation play.

Do you want to buy the stock now as a continuation play?

If it is a bottoming play, you would have entered it when the price of oil was bottoming in late December to early January. That was when the stock broke a downtrend line.

When it broke a downtrend line, it would have attracted the interest of deep pocketed and smart and experienced investors. Trend lines are tools of the wealthy and experience. 

I'm not joking.

It's the newbies that are often attracted by indicators of colorful flavors.

And then there was a bullish cross box breakout. Some smart traders/investors saw it and you can see volume started to increase by a lot since the box breakout.

That my friends is catching the bottom.

So you either make money by:

  • Buying a stock as it bottoms and starts a new uptrend
  • Or buy the continuation
  • Or buy the dips in an existing uptrend.

Since many have missed the 1st option, the way for you to make money in this stock is either to buy the continuation or buy the dips.

I'm talking more about people who use technicals to have a perfect entry. For investors, you can buy anytime you want LOL : )

Okay now let's take a look at the weekly charts so that investors can know what to expect.

The gap up today help to send it above the resistance level of around 0.85. What was once resistance will now be support according to technical principles. Therefore, if the stock drops to the support area, one can try to find a buy setup. 

If the stock is any good for investment purposes, then it should not drop below that area of support.

Right now the stock is at the weekly 200 MA resistance. There is another level of price resistance as well around 1.25. Therefore, if you are thinking to buy now, just take note of the risk/reward and the resistance overhead. 

Those who bought the stock when it traded above the daily downtrend line around 0.60 has already bottomed fish successfully.

I don't know about you but I would be a bit patient to wait for a continuation setup in the daily charts. Usually a stock that gaps up after earnings is a bit hard for me to find a setup unless after a few days to a few weeks.

Now let's take a look at the monthly chart of Dayang.

Well, although the nice run up the past few weeks was impressive, the stock is not in a nice smooth monthly uptrend yet. You can see how the power move in the past 2 monthly uptrends can do.

Perhaps it is starting a new monthly uptrend but I do not see it yet. Some time may be needed and hopefully we will revisit this stock again by then.

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