Stop, Look, then Act

Today, MPHB is testing its strong horizontal resistance of RM1.55. It closed at RM1.56 on relatively small volume. A break above this level, accompanied with big volume, will be bullish for MPHB.


Chart 1: MPHB's monthly chart as at 11/6/2009 (Source: Quickcharts)

Another stock that may be testing its strong horizontal resistance soon is Latexx. That resistance is at RM1.40.


Chart 2: Latexx's monthly chart as at 11/6/2009 (Source: Quickcharts)

In the current bullish trading environment, traders will jump into stocks without hesitation or second thought. We need to stop & take a quick look at the chart before pulling the trigger. Try the traffic light approach- stop, look, then go (or, don't go).