Tuesday, 29 September 2009

LOTO Fever

Who wants to try their luck and see if they can score a jackpot every now and then? Everybody who wants money, that's who. But we're not talking about people who normally lines up in the nearest outlet for a chance to win an ever growing prize.

We're talking about traders like us. When we buy into any stock, don't we try our luck and see if it gives us a jackpot? But there are many who don't know the difference of trying their luck against pushing their luck. So to avoid pushing your luck, let's try something we normally don't play.

LOTO has made a big run most recently and retraced a good chunk of that. When that happened, I thought this one is finished as soon as it just started. Until today...

Since Thursday last week, it has been following a textbook definition of a flag. 2 day pole, 2 days of consolidation, diminishing volume. Sounds like a flag, feels like a flag, smells like a flag. So now what do we do?

Since 16.50 has been serving as a resistance, we wait until 16.75 is hit and we go in. 18.00 is the minimum target being shown to us in this formation. Should this pattern not follow as expected, and we were already into it, 16.00 is the cut loss for this.

So who wants to try and see if there's gonna be a payday within 3 days?

Tuesday, 1 September 2009

Singing to a New TUNA

(Original post can be found in Absolute Traders)

I noticed last week that there were two issues that were moving up out of the blue. The first one was PIP, which we won't talk about. The second, is TUNA.

What I remember from this stock since it's listing is that it has been on the downtrend. Even if its fundamentals are telling you a different story, the price performance is something hard to ignore. Because of that, TUNA has long been relegated to the back of my priority list...until now.

Being a lover of flags, TUNA caught my eye when this has moved for 2 days with a total of 20 centavos. This alone made me sense that a possible pole is in the making. For the next two trading days, it consolidated near 1.78. By this time, I have somehow confirmed that it is doing a flag.

That being the case, I see that the resistance of TUNA is now at 1.78. A break of this at 1.80 can be considered a buy with a target of 1.98. If it turns out to be a wrong move, a cut loss at 1.76 is called for.

But wait! This isn't the only play available in TUNA.

On the longer term, it seems that TUNA is in the midst of a reversal pattern. Whether it is doing a triple bottom or a double bottom, it doesn't matter as both are pointing in the same direction: UP.

If we want to play TUNA for the longer term, we are now looking at the resistance of 1.90. Should this be broken, and I think it will when the target of the flag is about to be reached, volume should come in at 1.92. The new target for this will now be 2.65, giving us a probable 38% return.

So after all other popular issues have already made their move, TUNA is a late bloomer that deserves a second look.