Penta(7160) Break out from Contracting triangle and heading to 0.870 !!!

Executive’s Summary

Penta was breakaway from contracting triangle and heading to $0.870 and along the path, it should face next at resistance $0.775/ 0.815, Very high possibility smart money will use push through supply method (gap Up) to breach immediate resistance at $0.745, this action carry very strong evident that the price is being mark up to the target of 0.870 or higher.  

Jason’s Trade Plan

Early Stop loss < $0.700

Late Stop loss < $ 0.620

Partial Profit taking take place at.

1^st: $0.775
2^nd $0.815
3^rd #0.870
I will apply trailing Stop after target hit.

Technical Justification on Bullish

1.       Correction Wave 4 was ended on 6/16/2015, which is completed Wave a,b,c,d,e contracting triangle.

 

2.       Impulse wave 5  was kick in on 6/19/2015 and breakaway from contracting triangle , at the same time smaller impulse wave 3 develop on the action , it was carry very bullish implication.

 

3.    MACD golden cross over, Strong evident showed it is profitable is we just used this indicator and data show 70% success rate.

 

4.       Substantial Volume to support big candle breakout, very bullish implication.

5.       KLSE CI loss in tremendous point but Penta holding strong in correction wave. Once KLSE CI pick up, pass history data suggested most likely this stock will have rally up.

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  )

 

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

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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