SMART Trader

I am optimistic about the market on the short term. The index for KLCI, SMALLCAP and ACE are all trading above the channel high of the daily chart from yesterday closing. I have not consolidated with the indicators but what I see is a positive closing and I trust that if the index can close above the Weekly Channel High will confirm that we are in a new up-trend.

Market Forecast for 30 April – Today’s performance was better than yesterdays with market breadth marginally positive, thanks to penny stocks which show some sign of reversal. However there is no concern to celebrate as there is no confirmation of a reversal on the weekly chart for the KLCI, SMALLCAP and ACE.
As mentioned in my previous report the KLCI must close above the 1852 to confirm that the up-trend is still intact based on the Monthly Chart, even more important is KLCI must not close lower for tomorrow which happen to be the last day of the week and month.

As for the ACE and SMALLCAP we saw a small rebound to close above the channel low in the weekly chart and avoid confirmation of a downtrend.

SMART Explorer sell call has reduced from 55% yesterday to 50% today which is a positive sign.

Will be watching tomorrow’s performance closely to get a clearer picture based on Weekly and Monthly chart.

Our overall forecast is for market to close positive on the KLCI, SMALLCAP and ACE for tomorrow.

All the best.

Why I Sold MPAY and switched to EFFICEN and KNM

MPAY – Based on yesterday’s chart the price is not able to close above the Resistance Trend Line and closed with a “GRAVESTONE” candlestick. As the name goes this is a bearish signal however today close with a “Long Legged Dogi” which indicates the price can go either way for tomorrow. From my experience with this formation on a normal stock the price is likely to consolidate but once again with today’s candlestick the price can move either way. My reason for coming out is I am already realizing a 23% gain on this latest entry.
From the previous trend the price Is trading within the ascending Trend Line and I expect the price to come down back to 0.31
The Price closed with a big gap to the channel and will either retreat or move sideways until the gap is closed.
The Weekly chart is also trading with a big Gap to the channel with both RSI and Stochastic in overbought region.

EFFICEN – As mentioned in yesterdays posting the price for this stock broke the Channel High Resistance at 0.315 with volume which confirmed a new up-trend on the mini chart. I bought some at 0.315 yesterday and after closing MPAY I further collect EFFICEN at 0.325 because :
The indicators Stochastic and RSI is suggesting price can go higher.
The trend just started with Volume.
The Short Term Target is 0.35 – 0.36 and Mid Term Target at 0.44.

KNM – This is a risky move as the price is trading within the channel but still got rooms to down further and touch 0.665 tomorrow before resuming up-trend.
Based on the Daily Chart this stock is still in Up-trend and is at the end of consolidation after 6 days. This is a speculative stock and on a good day can move 5% to 7% in a day. However there is also a drawback if the Crude is negative and the price for this stock close below 0.665 followed by another Black Candlestick on Monday will spell losses for me.
However I see more up-side than downside for this stock and I am willing to take the risk