Penta forming Extended Wave 5 and heading to $0.900/$0.955

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Executive summary 

Penta; Correction wave 2 ended and uptrend wave 3 kick in on today, strong technical evident showed on today which is candle stick bullish reversal pattern formation( Piercing line) formed on today and MACD histogram bullish convergent established. Target for the wave 3 will be $0.900/$0.955 & extended wave 5 target is $0.965. Along the path to target, we should face resistance at $0.775(I anticipate it should be break)/$0.815/$0.900.

My trade plan

I will stop loss if price close below $0.640,
I will collect more on weakness along the uptrend trend line. give today price is $0.665.
I will lock partial profit along the resistance line

Technical Justification 

•  Penta was break away form contracting triangle on 19th/Jun, this action is a strong evident to show wave 5 uptrend was kick start and heading to $0.870. As per my anticipation, profit taking take place at $0.775(mention on my blog), this action gave a pause to the uptrend and stimulate correction happen down to $0.680 on 29th/Jun, the correction was develop another wave 3, which change wave 5 to extended wave 5 uptrend

• Today candle gap down close above 50% of yesterday bear candle, which was form a reversal pattern(Piercing line), the was offer an good deal to ride on early wave 3 uptrend.

 

 

• Stock individual characteristic study call buy, pass data shown 80% of success rate.

• Stock keep on building higher high and higher low, it is very strong evident it is on bullish trend.

Fundamental Justification.

Fundamental’s Justification on bullish.

1.       Environment scan who are riding this stock

a.       Matrix cool( supper trader)

b.      Fred Tam ( Malaysia TA pioneer) fredtam6@gmail.com

c.       Ooi Teik bee( FA guru) otbstocks88@gmail.com 

d.      Cold eye ( most famous investor in Malaysia)

e.      TCB stock watch  http://tcb-sifs.blogspot.com/?m=1

f.        Elliot wave Rider Jason Wong.

2.       Critical Fundamental Analysis By TB Ooi (Pls Subscribe his service as he did pretty good job on FA, Pls email him  otbstocks88@gmail.com  ) 

Target Price is at 0.940.

3.       Media talk http://biz.sinchew.com.my/node/115082?tid=8#ixzz3ZoPHTOBW

Technical Bread : Piercing line

Trading Challenge

Many people committed to buy stock is very easy, when come to profit taking and cut loss is one of the most difficult part in trading world, talking about profit taking is dealing with greed and stop loss is dealing with fear, cutting loss is a must in trading world because it stopping my capital continue to loss, in order to stay alive in trading world... it is a must !!! it is not an option, else I suggest you get out of the trading and you are not suitable.

I wanted to used simple example to share on the cut loss ... you bought an egg and prepare to  used it for fry rice, some how you notice/suspect the eggs you pick was/may turn bad.... the question now is shall out throw/scrap the bad one and pick another .... or nevermind bet or hope the suspicious "bad" egg will be good and risk the good rice which is ready to cook ? you make the call... I am believed in order to win I got to know how to prevent I am loss in the market... if I notice I am wrong... I got to admit and cut the loss and make a next move.

As a reminder for myself
I am always remind myself If the trend is go again me and violated my SL limit, I will cut loss base on the risk preference.
Stop Loss is painful process because I making loss, but it is necessary to take it, it is very important because it protect my capital to ensure I am stay in the market.

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