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In a couple of earlier posts, I mentioned that I believe the bull market we are experiencing is a cyclical bull market and that we are actually still caught in a secular bear market. This means that the previous high set in the markets would not be bested. So, we have to be careful once markets start testing those old highs. A quick check against the charts would tell us that we are nowhere near those highs yet.
However, since the lows of March 2009, the markets have recovered tremendously. The much anticipated correction has been elusive thus far but it will come and it is only a matter of time. In such a correction, it would be an opportune time to load up on quality stocks for the next leg up.
I would advise anyone who would like to make some money in the stock market to start drawing up a list of stocks which he or she would like to own for the rest of the cyclical bull. Then, load up during the correction. Buy on weakness.
We should not be overly bullish or bearish. We should not be stubbornly holding on to any position. I believe in being a pragmatist. Good luck!
AIMS AMP Capital Industrial REIT: This counter has formed two dragonfly dojis in a row. Look at the OBV and we see steady accumulation as steps are formed upwards. The MACD continues to pull away upwards from the signal line. This is a REIT with strong numbers and technically, it has limited downside as well. Still one of my favourite high yields.
CapitaMalls Asia: A white hammer! Another reversal signal! Dare I believe it? $2.12 support identified in earlier TAs was hit today. Closing at $2.15 is actually closing at resistance. So, if this is indeed a reversal signal, there should be confirmation tomorrow. Let's see.
Golden Agriculture: Volume expanded on a black candle day as price closed at 60c, the support provided by the 20dMA. If this support breaks, the next support is at 57.5c. The many times tested resistance at 62.5c remains the immediate upside target.
Healthway Medical: The declining 20dMA has made contact with the 50dMA. A dead cross is imminent. Price touched a low of 15.5c, a price the counter has not seen since 3 Mar this year. That this happened on much higher volume is ominous. MACD is under zero which suggests that the positive momentum is over. This is confirmed by the declining MFI, forming lower highs. The positives? OBV is flat which suggests a lack of accumulation AND distribution. Stochastics shows a deeply oversold situation. So? I do not expect any crash in price but a gradual drift downwards is probable, in the absence of any positive catalyst.
China Hongxing: Much lower volume. OBV flattened. Price unchanged. MFI and Stochastics are still declining and seem ready to move into oversold territory. For now, it seems that the selling pressure has abated but the technicals are definitely more negative overall. Any upside will meet with resistance at 15c, provided by the 20dMA.
Courage Marine: OBV turned up ever so slightly on a white candle day. It could very well have been a doji since only 2 lots were done at 23c at closing, seemingly in an effort to form a white candle. That price action has detached from the upper limits of the Bollinger band is obvious. This usually suggests that the uptrend has lost momentum. In case the price does continue moving higher, 23.5c remains the initial resistance, followed by 25.5c and 27c. Initial support is at 22c.
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