dimpledbrain

The conceptual framework for a man's search for meaning

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Support and Resistance

August 14th, 2019 No Comments

The first step to successful chart reading involves identifying (and drawing) [perfectly] horizontal lines on the chart called support or resistance. It goes like this: Imagine a stock price dropping from a high Once it is ‘low’ enough, it starts to move sideway A stock price dropping means sellers are overwhelming buyers. There are more […]

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Pbbank

August 14th, 2019 No Comments

Public Bank is approaching RM20, a long time support line since 2014 This represents a good buying opportunity for people looking at long term Even at current price, it has the potential to bounce back to RM22 (lower of the downward channel) For blue chip counters, the best strategy is always to buy at weakness […]

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Getting more and crucial conversation

August 3rd, 2019 No Comments

So the other day someone asked me a question – why are they pissed off when their expectation is not met This kind of situation occurs daily – I have seen a fair share of these situations. So I explained that there are a couple of pointers we have to always keep in mind: End […]

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Investment linked insurance and insurance savings plan

August 2nd, 2019 No Comments

I think many people get confused over this topic so let me pen this down: Any plan with the word insurance inscribed to it like investment linked insurance or insurance savings plan means just that – it is an insurance plan, i.e. a protection plan that covers you for any untoward incidents. When you buy […]

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What constitutes an uptrend

July 31st, 2019 No Comments

Stock price does not move in a straight line. It moves in waves. Conceptually as follows: If stock price moves like the grey line, there isn’t much we can deduce from. However in reality, price moves in waves like the following. Even in an uptrend, the stock will move up say 10 points, to reverse […]

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FBMKLCI

July 31st, 2019 No Comments

On 19 July, I projected FBMKLCI using a daily chart. I said it will push downwards, hitting 1640 as the first stop. 2 weeks later now, it hit that point. So an update is due 1640 is the mid of downward channel. It will consolidate here for a while before deciding on the next move […]

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Tick Chart vs Time Chart

July 26th, 2019 No Comments

The normal chart that we see is a time chart. Take for example a daily chart. Regardless of any buy and sell transaction, at the end of the day, there will be a record. A tick chart on the other hand, only records something on the chart when there is a transaction. If there is […]

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LTKM

July 23rd, 2019 No Comments

LTKM is an interesting case – it got a takeover offer at RM1.35/share (which represents ~20+% increase over last price) It has been on a downtrend since March 2015. If you have been holding this since then, you will be making a loss. Unless you enter after 2018 Can you see from the chart that […]

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Penta

July 22nd, 2019 No Comments

Penta is a very interesting choice It has been on an uptrend Recently it broke out from the upchannel to form another smaller upchannel The low it will go to test- at around the RM3.20 area (highlighted yellow) The lowest it can go RM3.15 area (lower of the upchannel) – BET ON for next one […]

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FBM KLCI

July 19th, 2019 No Comments

FBM KLCI has been on a downtrend since April 2018 and this is confirmed by Sept 2018. Looking at the current chart with the trend channels i drew, i think it can go to as low as 1550. It will first touch 1640 (mid channel) for this to be true If it breaks above 1670 […]

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