JKH - Trend reversed

JKH succeeded to reverse up. A relief for the overall market as well. As long as the present swing low of 149 is held, it will be in a trend extension. The present resistance is a test at 158, and a successful breakout will take it to 160. Let's see how long it would take to test 158/= in the first place. That being said the Volumes will certainly play a major role.

ALUM - Trending -/60 cents above the 52 weeks low - Watch!!!

ALUM - Has retraced from a 52 week high of 25.40 to the present 19/=. The 52 week low for the counter was 18.40. Which means that the stock gained 7/= from the low to the high. The present loss therefore is 6/40. That's a retracement of 91.4%(6.40/7*100). This is an interesting development. Along with this the RSI has fallen to the 52 week lowest range of 22.50 to 23 points. There had been an important volume change that happened on the 20th Nov '17 where 1.023M shares had traded, which was an above average trade. We saw their profits increasing from 43M to 83M from JUN to SEPT, that is a significant growth of 93% QoQ. The negative for the counter is the present Aluminum prices in the world markets. It has increased quite considerably.

I expect a trend reversal on this counter in the Short term. Therefore adding this to your watch list will be highly useful. Have a closer look at this counter.

 

ASI - Another trend failure

ASI - Saw another trend failure, and heading to a support area of 6349 and 6400. The recovery that occurred on the 16th November where the index trailed up from 6421 toned down the oversold situation but is now under threat. There is no sign of a recovery yet which is to be watched closely.

AEL - At a critical support area. Watchout!!!

AEL - Trading at a critical Support Range  between 23.50 and 24.00 Watch for the trend reversal. We saw a Trend reversal taking place on 2 occasions around this Support area. Present RSI is at a 52 weeks low  hitting 14 points on the 22nd Nov'17. Wait for the confirmation with a bullish divergence and an impulsive Candle with volume.

SAMP - Need to close above 350 for obvious reasons

Sampath Plc saw above average volumes trading in the last 2 days. Along with volumes the prices shot up from a low of 320 to a high of 345.40. An increase of 25.40 in a matter of 2 days. That shows how tightly the counter is held, where the buyers need to pay a premium to lure the sellers in. This is a clear indication of higher price levels for the bank in the way forward.

In order for the price to TC (Trend Continuation), then 350 must be broken on closing basis. If one is to base the traded volumes, it will be a no brainer for it to test 350 at the beginning of next week. In the medium to long term the Share Holders of Sampath Bank will enjoy higher prices due to the strong Fundamentals they show.   

LDEV - held within yesterday's range

LDEV - Ok it didn't extend, but the bulls on the counter would have been relieved to see that the Candle today was within the Candle of yesterday. The reason for them to be happy is that the volume of yesterday was 1.8M, and today's volume was much lower at 181K. That means they manged to keep the bears in control. A close above 13.50 could make the bullish trend strong, whilst the bears will be over-joyed to see it's closing below 11.50, which is the present swing low. For the trend to be very strong the volumes should be atleast above 500k for a continued number of days. In excess of 1M, will be great. Let's see how powerful the bulls are.....

Plantations couldn't extend

Plantations tested the resistance area around 990 yesterday, but couldn't extend. The chart that was posted is given below:

The present low is 944 points, and would be nice to see it is held. Failure to do so, it will find support in the channel between 899 and 956. Expectations of a growth in the Profits of Plantation Stocks will keep the index at a higher low, which is very bullish. Let's see what's that Higher Low going to be.

LDEV - Can it succeed on a trend continuation?

LDEV - to move into a trend continuation, the counter needs to break the recent high of 14.50. If it won't succeed then we will not see a trend continuation before the present pull back is over.

The candles of the preceding last 3 days formed a swing low, with a high of 13.40 and a low of 11.50. Today's range was between 12.60 and 13.20, which is within the range of the swing low formation. Any one trading could buy within the said channel, provided that the stop loss is made 10 cents below the swing low of 11.50. If you don't want to stop loss then it may not be advisable to trade the counter.

JKH - sorry that I missed to update...

On the 27th of September '17 I reported that JKH was trending within a channel between 160-165. The price failed to hold the channel and the rest is history.

The chart posted then is given here:

Present falling knife trend is not at all attractive for the counter. The momentum built with this rapid fall won't be reversed soon, until a consolidation takes place. That too needs time. Today's pin bar candle with a long upper wick is more of a bearish nature as it is preceding a long bearish candle. As such the down trend is on, and will not be over soon. Therefore any upside must be used to sell. Buying to trade will not be a good idea as yet.

Plantations touched the 1st resistance....but did not close above

In my Plantations chart yesterday I showed the 1st resistance around 990-1000 points. Price line did touch the area but did not close above that. Tomorrow's performance will be important. Whilst respecting the uptrend that the sector is enjoying since March '17, I do not think that the trend continuation will happen just yet. Therefore need to see the behavior with caution. Trade with Strict Stop Losses.

Plantations are up..... but may not break the new highs soon

As the plantation stocks recovered it is important to remind ourselves that unless the present highs are broken the up move will not sustain. As such whoever wants to trade need to understand the risk of getting caught to a rally which is false. The index on Plantations saw the price line taking support at the upper end of the yellow channel at 944 today. We might see it moving up to test 995-1000 points in the next few days,but may not break above that. A reversal from there onwards will take it down to the support region once again. If my expectation of a trend failure is wrong and the index move further, then 1035/1040 is what to expect.

If one would want to indulge in short term trading, then the stop loss is necessary below the present low.

Plantatins Index (PLT) will take support within 897 and 955 Points

Did you know that the beginning of the Plantations rally had started in December 2016? (infact there had been a trend reversal that had happened way back in April '16 too) Thereafter it had consolidated in June 2017. Once again the Trend continuation had resumed in July. So now what?
Another consolidation. I expect this consolidation and trend reversal to bring the index down to a channel between 897 and 955 points. If the plantation index is retracing then obviously the stocks in it will retrace too. I expect the Tea Average Prices to come down. along with that the profitability of the Companies.. But the averages will be healthy for companies to show consistent profits YoY.  The growth effects will help the Stock prices also to fluctuate tremendously. Therefore you will have regular trading opportunities. However please have strict Money Management Strategies when trading the Plantations. Talk to your Broker for the suitable money management strategies. If you do not get any help,feel free to talk to me.

 

ASI - Survived to hold the 100 SMA, lower trend line got rejected

ASI failed to hold above the lower trend line. But survived the 100 sma. There is a major support area around 6500 as shown by the horizontal trend line drawn in yellow. Needs to hold that to motivate the sentiments. Failure there could test the trend line in red. There are no signs of a trend reversal to the up as yet. I still want to respect the uptrend that started since March. If the ASI fail to hold above 6349, it will not sound good at all.