Saturday, 30 April 2011

TA Breadtalk

ADX: Downtrend
William%: Oversold
OBV: increasing
MCAD seems going up
Fibo Retracement: 0.60 support
EMA(200) found at 0.62

It seems like the downtrend is quite oversold. Based on TA, A good buy will be at 0.62, a better buy at 0.60.

However, based on my previous post, fundamentally I will not buy at 0.60.

(Disclaimer: The above is based on my personal opinion to record my thoughts and thinkings.)


la papillion said...

Hi OT,

Wah, so many indicators...

Breadtalk has low liquidity, so TA might not be too accurate for such stocks. Anyway, I see a bearish wedge forming, with neckline at 0.62. If 62 breaks, we'll be seeing quite a sell off. I don't like to buy in such situation.

I don't see anything good about this, from TA perspective. Perhaps you should just concentrate on the fundamentals for such poorly traded stock. As mentioned, TA isn't that good for such stocks :)

OT83 said...

Hi LP,

Thanks for advice.

Now I know TA not for low liquid stock.
I think i focus more on fundamental.

la papillion said...

Hi OT,

TA is ultimately about crowd psychology. It's more predictive if there's a lot more people, otherwise it can easily be manipulated by a sudden buy up or selldown. Basically if you see a lot of - in the chart with negligble or zero volume, there's no point opening the charts.

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