February 9, 2018

Who Leading Who?

We studied a few Hong Kong stocks to appreciate the February 2, Friday US Market correction impact to the Asia stock markets. Sunny Optical seems not being influenced by the US Market correction movement. We will study the stock again using tool such as MACD. 

Time to Buy?

Some analysts recommend to buy in at this points, they think this is a good opportunity to buy. Read an article by Singapore Lianhe Zaobao Finance 新加坡财经| 联合早报 for example, 股市大跌趁低进场 分析师推荐吸纳 10只股 (English translation, analysts recommendation to take the opportunity to buy these ten stocks).  We do not suggest you buy because you think the stock price are cheap. Do you really think the stock price is cheap. If it is correction, may be there are still room for the stock price to test the floor before you take action. Even if you miss the buy opportunity, has the miss harm you. No. But what if the buy is wrong, you will not be able to forget yourself for life may be.

Any lost to the analyst? No, talk is cheap and free.

We only interested to understand the price movement through technical analysis and not world economy, the fundamental. As today, there too much data for you to analyse, do you have the real information. Well, no sure. See so many cases of the companies or organization report false data, even Japanese company, such as Kobe Steel. Read story from Straits Times, Senior execs at Kobe Steel ‘knew about false data.

Most important, in trading there is no right no wrong, only how to trade and make money. If you are great trader when price goes up you make money, same when price comes down you make money too. If you try to catch the falling knife and what to get rich quick. You could be completely wrong and get poor overnight.

One, rule of thumb – manage your risk and no get rich fast at trading business. 

This Is a Cash Flow World – No Cash No Talk 

If you understand the fundamental of why stock price goes up or comes down, you will understand there is always a reason for selling off. One of the simple reason, is the market think, the price is too high. It is time to take profits.

This is a cash flow world, no cash no talk. Many will want to cash in for the paper gain at least for now till when the sky is clearer. Watch your risk.

Hong Kong Stock Analysis

2382.HK Sunny Optical Technology Company Charting and MACD

We studied Sunny Optical Technology Company stock earlier. We examines the stock chart, We found the stock price started the pullback since last November after the high above 150.

We add MACD indicator to understand the stock trend. See chart.

Time to Buy?

Since our focus today is time to buy? Manage your risk!

Price action the stock seems not falling any further, and MACD signals is very near zeroline. Not very bearish. So, there is a great potential for the stock the turns up.

If you are risk taker, and want to try. Make sure you have a tight stop loss, and within your risk profile. Remember, whatever it is this is just pure learning purpose, no buy sell recommendation. The is only a thinking out loud case. Enjoy your learning.

Powerful Chart Software – AmiBroker

The following chart is produced using AmiBroker charting software. It is a powerful chart software. You plot the stocks you are interested all in one chart, as long as you still could read them. See chart below. 

February 8, 2018 Sunny Optical Technology Company and MACD Signals

Moses

AmiBrokerAcademy.com

Disclaimer

The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.

These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.

Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.