Trendspotting is in!!!

Two years ago, one of the stocks that I have regretted not calling a buy on was MAS. The stock did a downtrend breakout at RM2.60 in August 2006. MAS was a loss-making concern then (and may well fall into that habit, again) and it had just completed a restructuring scheme. Because of that, I was hesitant and held back. That stock flew all the way to RM5.50 in a short six months. See the chart below.


Chart: MAS's weekly chart as at 7/5/2009 (Source: Quickcharts)

MAS has again broken above its downtrend line recently. Do you think I should call a buy on it now? Not particularly; downtrend breakouts are a dime a dozen where we are today. Almost every stock on the exchange is either having a breakout or has just broken out of its downtrend. So, if you're free over the weekend with nothing to do, try spotting for downtrend breakout. It's as easy as 1-2-3:

1. Go to Tradesignum (here)
2. Set the "Date Range" to 2 years
3. Type in the name of the stock in the "Symbol" blank
4. Then, click on "Update" or press "Enter"
You may change the "Chart Setting" according to your preference. For me, I like to use 3 of the "Price Overlay" (set as 20-day, 50-day & 100-day SMA) & 3 of the "Indicator" (normally, MACD, William %R & Average Directional Index [same as "DMI"]).

Enjoy & have a good weekend.