The answer is it is a big sell now at RM1.70 or above.Why there is a sudden rush for Drbhcom to jump so high so fast?
Lets look at the past 4 quarterly earning:
Quarter 3, 2009 = 5.36
Quarter 4, 2009 = 13.41
Quarter 1, 2010 = 8.16
Quarter 2, 2010 = 6.84
I believe this is definitely the work of the stock operator. The stock operator has been accumulating this stock at around the level of RM1.00
At this level, it is painting a adrenalin rush picture to the crowd so that all the dump money will jump in while the smart money is getting out.
Based on the technical analysis:
Combining the 2 previous candle, the candlestick is showing a shooting star pattern which is extremely bearish.
The MACD has been far stretched and consolidation is unavoidable. Imagine getting a piece of rubber and stretch it at the other opposite side. It will surely break.
Stochastic is showing that the blue line is crossing over to the red line. I would not want to be in this stock when it happens because stochastic has the ability to show reversal before the rest of the other indicators.
However, I might be wrong in my analysis. But trust me, if you are already in, you should choose to get out. For those who are not in yet, you can start regretting that you didn't get in at the RM1 level, but you should continue to stay out.
2 comments:
Not too sure if that is considered a shooting star.
Definition of Shooting Star: A single day pattern that can appear in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.
It did not close near its open.
I am not into technical analysis. Just started to learn.
Yup, if you look at the candle separately, then you are right, but the higher level (pro) of candlestick reader is to combine few candle into 1. if combine it is definitely a dangerous shooting star. it will take some time for you to understand it. you can buy some book on candlestick and inside they will teach you how to combine the candle.
Post a Comment