Technical Analysis Of Thong Guan Industries Berhad

Technical outlook of Thong Guan's stock chart and stock price.

25 November 2019 Monday

I have done an analysis on this stock last week and I believe this stock is a bit tired right now after the move up. Look at the previous analysis. One of the reason why you should not jump into this stock right now is because it has met a weekly triangle target.

When it comes to trading or investing. Timing is the key.

Many times it is the impatience of the trader that gives lots of headache and problems to him or her later.

Take a look at the daily chart above and you will see that there are 2 topping tail kind of pattern in the stock. This tells us that the stock is a bit tired and rejecting to go higher.

This does not mean that it will not shoot up. But I prefer that you wait for a continuation pattern or a dip to enter this stock.

The stock is above the rising daily 20 MA, 50 MA and 200 MA. And for readers of Dstockmarket this is the kind of stock that you should put into your watchlist.

Wait for a continuation pattern...perhaps another ascending triangle, or triangle or pennant or flag or box breakout or a dip to the 20 MA or 50 MA or a break downtrend line.

I do not see any of this pattern right now and therefore its best not to enter this stock right now even if it is in an uptrend.

Be patient and wait for the right opportunity to show up.

One very good setup appeared in the form of an ascending triangle in early November and those who took that will have been richly rewarded.

Patience my friend is the key.

21 November 2019 Thursday

I think the good earnings in Thong Guan is being reflected in the stock price. The stock showed traders that it wanted to go up when it broke out of a weekly triangle. There is also a daily ascending triangle.

If you are a frequent reader of Dstockmarket, I recommend that you pay attention to triangles and ascending triangles in the Malaysian stock market.

Right now Thong Guan is in a nice uptrend with it trading above the daily 20 MA, 50 MA and 200 MA. But that does not mean that it is a right time to buy now. It is quite overextended and its best to wait for a pullback or a continuation pattern to enter a trade.