harirzharfan19

MOBILIA - Breakout with no overhead resistance

Long
MYX:MOBILIA   MOBILIA HOLDINGS BERHAD
On 9/8/2021, MOBILIA broke out 0.540 with significantly higher volume than previous 14 trading days. Before the breakout, a few good signs are shown; firstly, the price volatility . Price became less and less volatile (contraction in price spread). Secondly, the volume contracted as well. The volume and price spread contract since volume surged on 23/7/21 (starting of base formation). I have seen multiple big winners in Bursa Malaysia, they all possess the same characteristics; big volume surge in the beginning of base formation, price and volume contract during base formation, high/significantly high volume during breakout at the end of base. Keep in mind, this is a new stock in bursa, hence no overhead resistance. One may say, heavy supply (heavy selling) may occur at 0.65 and 0.760 because those are the opening and highest during IPO, but in my opinion, buyers at that price already being wiped out 1st day after the IPO. No risk of heavy selling would occur soon in my opinion. Some may say, it will be in downtrend. I disagree because, looking at weekly chart, week 26/7 and 2/8 showed less participation in market (low volume ). Looking at previous weeks, for this stock, in my opinion, next 2 weeks, the weekly closing price would be higher than previous weeks. One may look for quick 30-40% increase from the 0.53 price level, or maybe, can park a few hundreds ringgits for a long stretch goal of 100-200%. Remember, no overhead resistance, basically a virgin area on top. No one is there, no one is waiting to sell up there. Since people love to compare against MAs, here we go. On daily chart , last 3 days closing price is not improving, but the closing is above EMA10, EMA20, MA50, MA150, and MA200. EMA10/20 is above MA50, MA50 is above MA150 & MA200. MA150 is above MA200. Above EMA10/20, and EMA10/20 above MA50 shows that, this can be considered for quick profits (1-2 weeks). MA50 above MA150 and MA200 shows that medium term (4-8 weeks). MA50 above MA150 and MA200 is similar to Mark Minervini's approach. Price above MA150 and MA200 shows that, even for long term (more than 2 months), this stock is also can be considered. Putting Stan Weinstein approach of using RS , looking at how this stock performing against KLSE index, in daily chart , RS level is showing uptrends. Another indicator to show this stock is must buy can be held very long.

I wrote a lot here, but basically, looking at price spread, price pattern, volume pattern, MAs, and RS , all are screaming; this stock is a must buy, can be held in long term.

Thank you for reading, good luck, and trade at your own risk (TAYOR).

P/S: My trading method is adapted based from Livermore, Minervini, and Weistein's approach. It's not a perfect approach, but it suits my style and my timing. Batting average is 47% now. Nonetheless, I strongly recommend you to read trading books and form your own trading method, regardless on how it's being based from. One thing that I learn, price pattern, MA, and volume ; all great traders only used these 3 things. Works well for me! Good luck guys!