DRBHCOM i had observed the chart momentum recently, Another "Dark Horse" this one was Foreign and Local Fund Manager favourite "horse" .. "How" do we know that it was the Fund Manager and also many investor, trader and retailer favourite "horse" ? We will noticed from the Newspaper, forum, blog and etc etc which post their "Target Price" which means they already had accumulate slowly when the price decline (Note: decline almost 22% !), then "How" to judged that whether this "Horse" are ready to "run" ?
"When" was the right time to enter and ride with the trend ? We can clear our doubt with reading the chart pattern as follows :-
1) Bullish Harami Cross - The Bullish Harami Pattern is not a major reversal pattern, however, IS A MAJOR UPSIDE REVERSAL PATTERN. Short traders will not be wise to ignore the significance of a harami cross just after a long black candlestick.
2) Bullish Inverted Hammer - Bullish verification on the day following the inverted hammer is required. This verification can be in the form of the next day opening above the inverted hammer's real body. The larger the gap the stronger the confirmation will be. A white candlestick with higher prices can also be another form of confirmation.
3) RSI was touching 30
4) Stochastic was oversold which is below 20%
One more important question to ASK ourselves was "When" to "Exit", therefore, we must have our own trading plan before enter any trade which means the "Target Buy" and "Target Sale", cut loss if the trending was against our target. (Note: Strong support at RM2.49 AND Resistance at RM3.20) ...enjoy your trading and good luck !
(Note: This is NOT A BUY/SALE CALL, the writeup was for my own pleasure reading and reference, its your own money, is your own responsibilities for your own action, trade at your own risk.)
The Epic Legend -enjoy the beat ...
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