Friday, November 21, 2008

Tonight DJ!!!

Is it any strong rebound at DJ at tonight? After broke the 8,000 points, usually market seeking the 1st support about 20% lower from 8,000, i.e. about 1,600 point adjustment. Hence, I was projected that DJ will touch 6,400 points or below only can rebound.

A lot of investors assume that after 2 days adjustment, it should have a technical rebound. Because in this year had happen few times. But, I am here to given a warning, DJ market could be continue has a adjustment at tonight. Because equity market up or down can not measure by formula or mathematics instrument. If the strong support break, it is mean the confident was lost. It will search another group of confidant to make a new defend line.

Lets me give you are a few example to support the above theory.

a) Recently MRCB touch higher price at 89 cents, after broke my first support price at 79 cents. Today it was hit as low as 62 cents; that is about 17 cents or 20% lower of 79 cents.
b) Zelan was broke RM1 and today hit as low as 80 cents, that is about 20 cents or 20% lower of RM1.

But it is a new defending line for MRCB and Zelan. I do not know yet. Because it also can adjust it more than 90% if the said company internally had own bad news. So, usually I will advise stay away from that. The reasons are: -

1) Profit Margin limited.
2) Every level hidden a lot of holder want to release the holding.
3) Bad news will continue appear on this particular share.

The above is my experience.

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