Hi everyone! Just sharing some of my views about Homeriz here as my friends are asking me about it.
I think many would be asking what could we start to expect from this counter. Is Homeriz going to continue the uptrend soon? Or are we seeing further downside in near future?
Let me explain my viewpoints from what I am studying from the chart through a few indicators.
First, we have seen a nice uptrend since the beginning of the year and therefore an uptrend channel has been formed lately. Prices have been holding well within the channel going up until recently we saw a major pullback occurred this month Dec 10th, pulling the price down from RM 0.89 to RM 0.615. (Price adjusted after split) A down of almost by 30.8%.
So has the price bottom yet? I would explain this through Elliot Wave Theory, a reputable wave theory used by many traders worldwide. From the chart, I have dissected it into 2 phases. Phase 1 is called the Impulsive wave 12345 that gave us a nice uptrend driving us up from 0.285 to 0.89. In this trend, you can clearly see wave 1 to wave 5. An uptrend always consists of 5 waves according to Elliot Wave Theory. And we can see all 5 waves in the uptrend of Homeriz so I believe the uptrend has likely completed now. Therefore a correction of ABC wave will be healthy next.
To give more weight to the my above belief of the uptrend has likely completed, I would give 3 reasons to support it, first all key moving averages of DMA 21, DEMA 34, DSMA 50 have all been broken. Secondly, the recent pullback has broken the uptrend channel. You can clearly see prices have moved out of the channel, this is a first sign of trend reversal. A trend reversal for correction is therefore ahead. Thirdly, a strong pullback occurred this month is likely the behavior of wave A movement. Wave A movement is the second part of Elliot Wave Theory, which is also called the corrective move ABC. You can clearly see where I have labbled all the ABC waves. Usually wave A happens with strong downward momentum. Therefore the recent pullback is likely Wave A. For more of Elliot Wave Theory, please refer to this link: stockbuz.net/elliott-wave-rules
So now the likely question to ask is how far the correction could take us to? And where are we now? I believe we are likely sitting at wave B corrective move. Wave B is usually a bounce that happens after a wave A drop. This wave B bounce has retraced by 38.2%, which is the minimum retracement and we have met it at about 70sen a few days ago. So if wave B is done, then likely next continuous move will be a wave C. Wave C is a continuation wave going down of wave A provided wave B is done. If wave B is not done yet, we could likely see a move up higher to probably 75sen before further correction. If wave C starts, it could likely send us down to either C1 or C2 before we see a new uptrend again or some sideways movement.
C1 and C2 areas are the 50% and 61.8% retracement areas of recent impulsive upward movement. These are the likely retracement area that often take place at. However we will need more confirmation to take place before we can confirm this, likely a break and close below RM 0.615 will kickstart the wave C. To protect ourselves, we can always set a stop loss. A stop loss therefore can be placed at around RM 0.60. Once this level is touched, the system will automatically prevent us from further losses.
Hope this will help you, if you have any question, please post them in the comment section. Thank you and good bye! Wishing you all a happy new year!
I think many would be asking what could we start to expect from this counter. Is Homeriz going to continue the uptrend soon? Or are we seeing further downside in near future?
Let me explain my viewpoints from what I am studying from the chart through a few indicators.
First, we have seen a nice uptrend since the beginning of the year and therefore an uptrend channel has been formed lately. Prices have been holding well within the channel going up until recently we saw a major pullback occurred this month Dec 10th, pulling the price down from RM 0.89 to RM 0.615. (Price adjusted after split) A down of almost by 30.8%.
So has the price bottom yet? I would explain this through Elliot Wave Theory, a reputable wave theory used by many traders worldwide. From the chart, I have dissected it into 2 phases. Phase 1 is called the Impulsive wave 12345 that gave us a nice uptrend driving us up from 0.285 to 0.89. In this trend, you can clearly see wave 1 to wave 5. An uptrend always consists of 5 waves according to Elliot Wave Theory. And we can see all 5 waves in the uptrend of Homeriz so I believe the uptrend has likely completed now. Therefore a correction of ABC wave will be healthy next.
To give more weight to the my above belief of the uptrend has likely completed, I would give 3 reasons to support it, first all key moving averages of DMA 21, DEMA 34, DSMA 50 have all been broken. Secondly, the recent pullback has broken the uptrend channel. You can clearly see prices have moved out of the channel, this is a first sign of trend reversal. A trend reversal for correction is therefore ahead. Thirdly, a strong pullback occurred this month is likely the behavior of wave A movement. Wave A movement is the second part of Elliot Wave Theory, which is also called the corrective move ABC. You can clearly see where I have labbled all the ABC waves. Usually wave A happens with strong downward momentum. Therefore the recent pullback is likely Wave A. For more of Elliot Wave Theory, please refer to this link: stockbuz.net/elliott-wave-rules
So now the likely question to ask is how far the correction could take us to? And where are we now? I believe we are likely sitting at wave B corrective move. Wave B is usually a bounce that happens after a wave A drop. This wave B bounce has retraced by 38.2%, which is the minimum retracement and we have met it at about 70sen a few days ago. So if wave B is done, then likely next continuous move will be a wave C. Wave C is a continuation wave going down of wave A provided wave B is done. If wave B is not done yet, we could likely see a move up higher to probably 75sen before further correction. If wave C starts, it could likely send us down to either C1 or C2 before we see a new uptrend again or some sideways movement.
C1 and C2 areas are the 50% and 61.8% retracement areas of recent impulsive upward movement. These are the likely retracement area that often take place at. However we will need more confirmation to take place before we can confirm this, likely a break and close below RM 0.615 will kickstart the wave C. To protect ourselves, we can always set a stop loss. A stop loss therefore can be placed at around RM 0.60. Once this level is touched, the system will automatically prevent us from further losses.
Hope this will help you, if you have any question, please post them in the comment section. Thank you and good bye! Wishing you all a happy new year!
Comment:
My conclusion to this counter is therefore the price likely has not bottomed.
Comment:
More on Elliot Wave Theory, school.stockcha...ts.com/doku.php?id=market_...