ASI - No signs of a retracement. HEADING NORTH

Many a time I've been mentioning that the ASI could retrace from 6400 points to 6250 points. But given the market behaviour since 2014 I also did not expect major retracements within a trend. This time too it only paused in and around 6400 points and now will head northwards to test 6500 points.100 DMA is at 6430, but I'm not sure whether that will stop the trend. One major area is around 6579 points, which is the 100% extension of the fall from 6400 area to 5800 points. This is given in the Chart below. I expect the market to test that in the short term.

ASI - Inverted Head and Shoulders right shoulder is at 6255 points.

All Share Index is at a major formation, which is upward bias, as it is nicely forming an INVERTED HEAD AND SHOULDER. I would like to see the right shoulder being establish at 6255 area but today's close was almost exact at Feb high of 6422 range. Therefore it could retrace to form the right shoulder as said above, OR we may see a breakout from 6422 and head north to test the 100 DMA  of 6455 and thereafter the Jan top of 6552 points.

AEL - If it takes support above 22.00, expect to test 26.00 to 27.00

Access Engineering Plc had been trending up with relatively high volumes for the last 11 market days.
However the counter took resistance at 24.00, which was one of the major areas. But the volumes that traded on the fall  cannot be considered as large. Having said that, as the counter made a swing high at 24.00, we can expect a retracement which could be a pull back in the present uptrend. Given the trend I doubt it coming down below 22.00, and if I'm right then the stock will turn above 22.00. Thereafter if we see a break out of 24.00, then the next levels of resistance will be around 24.90, 25.90 and 27.00. My Buy call for the short term will either be at the swing low above 22.00 or a break out above 24.00 with strong volumes. Since both of these have not occurred as yet it warrants a close watch. The completion of a pull back could make an easy 10 to 15% short term gain.

ASI - Momentum does not suggest a fall below 6300 points

The momentum of the ASI for the last 23 days does not indicate a steep fall below 6300 points. It is clear that the pace of the market was too high, and a cooling off could be a welcome sign. But the trends we saw since 2014 has a pattern of not falling too much during a trend which is intact, like what we see at the moment.
Taxing the public by a Government can be referred to as NORMAL, but not the smartest. Unfortunately this is the case at present. The Taxes we did not see during the previous regime is emerging from the present set who were elected to Govern with Professionalism, and innovation. A Stock Market anywhere in the World will not accept Taxes with open arms. But the many unpopular trials if they are to be called innovative did not bring a favourable out come to any in the Country. This was evident in the Market as well. As such the Market fell more than 600 points. This was a great opportunity for the Investors who picked up shares at bargains. As such any further innovations by the present PROFESSIONAL SET can certainly open up bargains for those who would BUY on value.

But the traders will not find it the best, as they would not benefit if they were to trade the way they used to. DO NOT GET CARRIED AWAY BY RUMOURS AND STORIES, as they have no place at present. Still if you want to go behind them, BE AWARE that only the rumour and news spreaders will benefit and any one who follows them would not benefit at all.

Trade with a plan, and let the plan make you trade.

LB Finance Plc - Watch out

Since September 2015 I have been posting a couple of articles on LB Finance. My Buy call was not short term centric but more of Long Term. Therefore a stop loss was not given. The fundamentals are very strong and this is one of the rearrest of Companies where you could have predicted the earnings just by looking at their quarterly statements. In September I said they could make an EPS of 20.00 for 12 months. In 9 months they did 18.00, so there is only 2.00 to cover. I do not think I'm a genius to predict like that. But I only cultivated a habit of tracking stocks, and follow them on technicals.

LFIN will send their final quarter results one of these days, and they will obviously show more than 20.00 in profits per share, and by May or June they will announce their dividends. The next best thing is that March to May had been a good period for Traders of LFIN. The prices now have trended up showing the same bullish momentum building up. However we do not see a lot of volumes trading, hinting that many of the holders of Volume don't like to part with it any time soon.

Also a stock of this caliber should have been bought into, on Dips. Who ever did it could make decent returns in the weeks to come.

Rs. 128 looks an area of resistance at the moment but doubt it will retrace too much this time once it hits that mark.

Near term target is around 137.20, and testing areas of 140.00 and 150.00 won't be a surprise, due to the strength in the Company.

DFCC - Short Term BUY increased to 144 - 150

Almost all the counters I painstakingly covered on the 8th of April 2016, went up more than the prices at which they should have been bought. I was more conservative to give entry levels on Price dips, than follow the trend.  But there are many stocks that is worth Buying even at the present prices to pluck returns of 5 to 10%.

One such counter is DFCC. With the banks rallying I expect it to follow the trend and give a nett return of 5 to 10% as follows:

Buy (Enter) - 146.00
5% Exit - 156.70
10% Exit - 164.10
Stop - 138.60

It is very important to follow the stop, as nothing is certain in life. Please manage your risk, and act with responsibility.

Should we be scared to Buy JKH - deserves 10% in the Short Term

JKH, all knows is the biggest Conglomerate in the Country. Many have now been talking negatively about it just like how they talked about the Market. Now the Market has rallied. The pundits have missed the Bus. WAIT AND SEE FOR THE SAME TO HAPPEN WITH JKH TOO.
The Market sentiment is improving to be Bullish, this will certainly stream over to JKH in the Short Term.
Weekly chart that I've given above shows that the MACD has cut the signal line for the 1st time since 4th of January 2016.
Weekly RSI is around 37, and it was in the 30's since the 1st Week of FEB 2015. This is certainly due to the bearish sentiments the counter had for such a long time. If you take the 3 quarters since June'15 EPS has been 1.91, 3.01 and 3.26, which in effect may not be the best, but this counter is famous for trading at higher multiples compared to the present numbers. There are many reasons and theories given for the prices to have got battered for such a long time, but this can not be the case always. Therefore with due respect to the negative sentiments/theories that are visible for the stock, no one could expect it to rally with the backing of fundamentals. This is why this counter should be looked at from a short term point of view.

My call on this is to Buy between 150 to 153.50
to Sell at 172.90 for a 10% return. And at 165.10 for a 5% return.
But strictly follow a stop loss at 146.00 and take a 5% hit if the trend goes against it.
I must also say that 146.00 is a good price for the long term collector of the stock.
TRADITIONALLY THEY GIVE THEIR FINAL DIVIDEND IN MAY.