Perwaja (5146); Long Term investor eyeing it !!!

Executive Summary 

Most strongest and longest wave 3 was formed on 2nd of July'15(break out $0.26) and heading to the long term investor target of $0.505/$0.704, Med term investor toward future traders were bought in last week(WW27), strong evident showed prices well support and stay above $0.260
Base on past history data and TA analysis, most likely next move up will kick in toward extended wave 5 target of $0.390/$0.420. Short term toward FIFO trader may target on $0.360/$0.400.
I am anticipating immediate resistance $0.330 will be remove on next swing up and moving toward $0.360/$0.390/$0.420. If any weakness toward immediate support @ $0.285/$0.290 is provide good opportunity for me to collect.
I will stop loss if Price go below $0.260.

Technical Justification(bullish)

Elliot wave 

Cycle wave(Institutional Investor)  is wave 3 and it is most strongest and longest wave in Elliott wave theory, base on the chart below is demonstrated wave 3 is confirm by price move beyond and $0.260, it also successfully stay above $0.260 which supported by strong evident of price been retest couple of time on 2nd/6th/8th of July. target of Wave 3 is $0.505/$0.740

Primary wave(Long Term Investor) 3 development is ongoing which is moving toward the target of $0.360/$0.660. follow by Intermediate and minor wave degree, which is under extended wave 5 and wave 3 development, it is moving toward $0.390/$0.420

Wave 3 extended to $0.360/0.420/0.490

4 stages Market 

Market 4 stages
Stage 1 Accumulation : Stock is accumulating by Smart money or professional trader.

Stage 2 Mark Up : Stock is marking up to higher prices for better value.

Stage 3 Distribution : Stock  is Distributing or change from the strong holder to  weak holder. 

Stage 4. Mark down : Stock prices degraded and no more support by strong holder

We are going ending stage 1 with double bottom break out !!! stage 2 is kick in now and  market being mark up toward very $0.740/$1.80

Note :I did analysis in Evergreen on Jan'15, it is very similate Market 4 stage. http://klseelwavetrading.blogspot.com/2015/01/evergreen-only-bull-in-bear-market.html

Environment Scan 

News Keep on out and talking about capital injection, base on TA show most likely it will come truth
1.  China’s Zhiyuan steps in early to revive Perwaja - The Malaysian Insider
http://www.themalaysianinsider.com/business/article/chinas-zhiyuan-steps-in-early-to-revive-perwaja

2. China's Zhiyuan Group to inject RM300m into Perwaja | theSundaily
http://m.thesundaily.my/node/308721

3.Perwaja has until July 31, 2015 to submit its restructuring plan to the authorities - See more at: http://m.thesundaily.my/node/308721#sthash.lvZWPfYy.dpuf.

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.

DISCLAIMER:

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