Nam Cheong - Another good entry opportunity.

post first. will update post again later. brief description is in the picture. night.

Update:
As seen from the chart, Nam Cheong was sold down to $0.305 level on 27 Jan, the sell down was mainly inline with the peak and trough of uptrend chart, however going down to $0.305 level seems abit too much as it is hits the 50ma support level with speed. The heavy sell down is likely due to recent poor sentiments on Asia markets, especially the emerging markets. However, as sentiments soon stabilizes, and Nam Cheong bounds right back up (on 28 Jan)

Charts shows good support @ the 50ma level, with stochastic reaching its low (below 20) and moving back up towards the signal line and 20 line. MACD also show declining strength of the negative MACD histogram and is moving closer to its signal line.

From the candle stick patterns, the gap down on 27 Jan might be last of the sellers liquidating all holdings to get out likely due to profit taking, coupled with poor market sentiments. However, the gap up on 28 Jan shows that this is an exhaustive gap and that selling pressures is diminishing, hence the gap is quickly filled as the price reverses with little remaining sellers. Price action shows that uptrend channel is still firmly intact, with first trough hitting the 50ma support since the break out above $0.300. This gives a good buying opportunity for those who missed out on the ascending triangle break out few weeks ago. A good entry price would be around $0.310 with tight cut loss at $0.300 (5%) of break out price.

Cheers! and please share my blog if you have profit.

p/s: current market sentiment is weak, due to weakening of emerging market and poor data statistic from China and Europe, hence cutting loss is very important when things start to go south. And lastly, please trade within your means.