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.