ASI Weekly Report with a difference

Despite the low sentiments shown in the broad market the Traders were not giving up the Stock Market in Colombo. Many of these Traders do not care as to what they buy and sell, as long as they can buy and sell. They know with experience that they make money and loose as well. But they trade.

ASI overall didn't move up much, but moved up. Just 4 points. But the number of trades for the week ended with 22,854 about 700 lower than the last week, but the 2nd highest in 4 weeks. PE of the market ended lower at 9.36 indicating to the Investors, how attractive the Companies are despite the lower interest shown to pay a premium when investing.  The number of Stocks that traded over 100 trades increased too, from 49 trades of the last week to 51, which is the highest during the four weeks. Therefore the Traders showed that if they are given the opportunity to trade they would come out with interest and freedom. Who is haunting this freedom only God knows. Since 1985 we have finished 33 years, a lot of intellectuals know the causes and they know the answers as well. But due to some kind of inertia the Countries who lagged behind us are overtaking us by giving their Traders the freedom to trade in umpteen ways, but our Traders have to trade with whatever is available. One day/Someday our Traders will get the same freedom and Benefits like their overseas counterparts. Hope we will live to see that day. Till then it's prudent to Trade and keep trading the right way.  At least we can now see that Trading with Charts work in this limited illiquid market as well.

Counters over 300 trades were 12, that was lower than 18  of the last week. Also the stocks with over 600 were down from 8 to 4. This wasn't a surprise as we just finished the month. Normally month end selling and profit taking happen when short term opportunities were available in the past too.

Plantations were busy during the last week, but pulled back during this week. Chartists were not surprised of this, as a pullback was expected since many of those stocks tested previous resistance levels but didn't breakout.

KAPI, SAMP,BFN and HEXP were classic examples of how breakouts are important for new highs. Let's now look at the 4 counters that had more than 600 trades during the week, and see how they would perform during the next week.

SAMP Weekly Chart

19th of January 2019, roughly 2 weeks ago I gave you a trade idea. You can see that here: https://techwatch-esgee.blogspot.com/2019/01/samp-new-trend-formed-trade-idea.html

As you can see I have given a Target Range and Buy Range with a Stop Loss. Buy Range worked well, and the Target range was hit as well. You can see that in the chart below.

I expect SAMP to range bound between 230/00 and 245/00 before a major breakout. Let's allow that to happen before any involvement.

BFN Weekly Chart

This counter was covered in my post on the 18th with a trade idea. You can see that here: 

https://techwatch-esgee.blogspot.com/2019/01/asi-weekly-reportdifferently.html

As you can see in the below chart, you could have bought at the given range and have tested 17/00, which was the highest reached on the 5th and 6th of December 2018. The final target will be at 18/00, but will depend on the pullback which may happen during the next week.

KAPI Weekly Chart

On the 23rd I covered a post on KAPI, which you can see here:

https://techwatch-esgee.blogspot.com/2019/01/kapi-what-is-going-on.html

Just as expected the 17/20 breakout reached and tested the target of 19/00.

We now see a strong support turned Resistance between 19/00 and 23/90. This stock has always been faced with resistance pressure, which had been broken out with strength and vigour. To reach and breakout of that resistance between 19/00 and 23/90 that same strength and vigour must be there. Let's see how successful the present bulls are in doing so. Any one trading now must be aware of this and trade with a stop loss  between 17/00 and 18/00 range. Else do not touch, as there are other opportunities. Let's monitor the price action closely.

MASK Weekly Chart

After a heavy week of trading with volumes during the previous week MASK along with other Plantation Stocks went into a consolidation. But had 831 trades with 656,816 shares changing hands during this week. However the daily volumes were lower than the average volumes that needed for the stock to move higher. At least 200,000 shares needed to be traded on a daily basis for the stock to strongly move and breakout of 13/50 and hit the 1st target of 14/00. Let's watch and wait till then.

In addition to these stocks, we see LDEV,BALA,MBSL,IDL and RHL drawing the attention of the Traders during this week. Let's see how they would perform in the week ahead. I will cover them as and when they would show us opportunities along the way.

I wish you success in your Trading During the next week.