Indentifying the market leaders is very important because market sentiment during rally can depend on market leaders. When market leaders move up, many stocks will follow. When they retrace, we will see selling pressure in many stocks. Market leaders can change. It can be Counter A, B or C now but it can change to Counter D or E and so on. Market leaders are usually the one that move a lot continuously & usually in top volume during their move.

Who are the current market leaders?. They are $Rex Intl(5WH) , $Geo Energy Res(RE4) & $AusGroup(5GJ). Geo & Rex lead for the past few days but Ausgroup is the one leading on Friday. So if any of these 3 chiong up, the other 2 and other stocks will follow to move. Likewise, if one of them drop, the other 2 will likely drop n many stocks will be under selling pressure.

So how will most stocks move this week?. I have posted the chart of these 3 market leaders. From the charts you can see that Ausgroup & Geo hit the DMA resistance & retrace. As I have mentioned before, it is not easy to break the DMA resistance ESPECIALLY if it has it has moved up so much. So likely it will take a rest & continue it's uptrend OR it will start to continue to drop from here. Nobody will know. Now we look at the past 2 days volume bar. Past 2 days volume for Rex, Ausgroup & Geo was very high compared to previous sessions. Very high volume usually means distribution has taken place. So, the chance of Geo & Ausgroup to drop on Monday or Tuesday is higher. Although Rex have not hit the DMA resistance, but it's very near to DMA resistance & volume is also very high. It MAY or MAY NOT hit the DMA resistance before it drop. Even if hit, it will still retrace. So when these 3 market leaders drop, many stocks will be affected and follow to drop.

So is the rally over?. There's still some hope. Usually this kind of rally(not bull run) will last between 2-4 weeks. The rally already 2 weeks. It may or may not continue. BUT....many cheap pennies(those less than 10cts) haven't really run. Thus, the rally will likely continue with attention shifted to cheap pennies. On Friday, we started to see cheap pennies on top volume e.g. Charisma, Jaya, RP, Jiutian, Chinese G, Vallianz, Spackman & so on. And counters like Sapphire, Asian Micro, Magnus, Joyas & so on started to move.
So....at the beginning of the coming week, be prepare to face some knee jerk selling when the 3 market leaders starts to drop. But it should stabalised after that when cheap pennies started to take over as market leaders.

Is there any money making opportunity then? Yes! If you want to long, be prepare to look out for cheap pennies. If you want to short, look at the 3 charts that I have posted. Q to short at the DMA resistance(shaded) or 1 pip below the DMA resistance. The chances of closing above the DMA resistance is low. Of course, the price may not necessary move to the DMA resistance since it has hit. It can start to drop from where it is.
The above is just my view. It may not move according to what I predicted. So pls DYODD or KKKHH. Don't blame me later on.

Just some weekend sharing. Huat ah!

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2 comments
Stockcham

We are coming to the last stage of this mini rally. I hope it can prolonged so that we can continue to huat....lol.

rachel9293

there is resistance now


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Expiry:
Target Price
$0.119
(+4.39%)
NOW:

Trend still up. Close above MA resistance. More upside expected this week. Can hit between 119-121.

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Busy days lately, so didn't post much. Now got a bit of time share share a bit.

If you look at the oil counter leader $Ezra(5DN), it hit the DMA support 74 and hold well. Day end matching we saw many lots match at 76. This is unusual. Why unusual?. Because market is weak. Why so confident dare to matched buy so many lots at 76?. Unless someone knows that the oil counters going to rebound.
I have posted 3 charts....$Ezra(5DN), $Rex Intl(5WH) and $Nam Cheong(N4E). All hit support and hold there. We should see some rebound from here next week. Can take a look at $Keppel Corp(BN4) chart also. Also hit some support. Sooooo, next week oil counters should have high chance to rebound. They may helps to lift up market sentiment. We shall see.

Pls dyodd hah. Suay lang's post must dyodd & kkkhh.

Huat ah!

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Went through some stocks. I've chose 4 counters that worth a look.

$Geo Energy Res(RE4) - Broke DMA resistance 2 days ago. Friday close with another small white candle. A few small white candles can lead to an ang mo candle. Volume increase for the 2nd day.

$UG Healthcare(41A) - Well supported by trend line. Trying to test 52 this week again. Got a very good chance to break 52 this week. But buy sell volume small. Not easy to play.

$Jumbo(42R) - See the candles....every 2 black candles will proceed by white candle. Friday is the 2nd black candle. Monday white candle?. 395 resistance is the tough one....tested 3 times. I believe this time should hoot through.

$USP Group(BRS) - Saw it gap up on Friday. Volume was bigger compared to many days. There's a small possibility that this may be the next outsider counter to move. Buy sell queue also small. Not easy to play. Maybe look look see see can liao.

Just some sharing. Pls dyodd!

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This coming week market should be good. I would think those stocks that got trashed down severely in the past weeks especially those between $0.40-$1.00 should be in the limelight. Pennies may just follow to move a bit. Counters like $Rex Intl(5WH), $RH PetroGas(T13), $Sino Grandness(T4B), $Ramba Energy(R14) and so on should see more recovery. Let's see which one will recover more. For pennies, I think $Mirach Energy^(AWO) and $Vallianz(545) will stands out against other pennies because they dropped more recently. Pls DYODD. Huat ah!

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This morning bought some $Rex Intl(5WH) at 485 to try. Wish me luck! Huat ah!

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