Friday, April 30, 2010

BJToto- poised for a bullish breakout?

BJToto has just broken above its horizontal resistance at RM4.50 as well as the downtrend line (which stretches back to May 2007) to record an intraday high of RM4.67. As at 9.45am, BJtoto eased back to the breakout level of the downtrend line at RM4.60. If BJToto can break above the downtrend line, we may see further upside to BJToto.


Chart: BJToto's weekly chart as at April 26, 2010 (Source: Tradesignum)

If BJToto can break above the downtrend line at RM4.60, BJToto could be a trading BUY.

Note: A cheaper option is to try BJToto-CF, which expired in Feb 2011. Its main terms are exercise ratio of 3-to-1 and exercise price of RM4.00. At the present price of RM0.20, BJToto-CF is trading at no premium.
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7 comments:

  1. UnknownFriday, April 30, 2010 10:04:00 AM

    great if that true

    ReplyDelete
  2. IvanFriday, April 30, 2010 6:25:00 PM

    sold the bjtoto-cf at 0.185 few dyas back. .and masuk pcket 10% net gain :D . . today fly high some more. .

    ReplyDelete
  3. UnknownMonday, May 03, 2010 11:55:00 AM

    Dear Alex,

    Should we sell the shares now considering a change of share price at 6%? Or we should hold?

    Thanks a lot...

    ReplyDelete
  4. Alex LuMonday, May 03, 2010 3:59:00 PM

    Hi Ivan,

    Better to make a small profit than to have made nothing. Better to make nothing than to have made a loss. If we try to hard to make big profit, we end up taking unnecessary risk which lead to big losses.

    There is a Buddhist saying that one should appreciate the things that we have that we want to have; one should also appreciate the thing that we do not have that we do not want to have.

    ReplyDelete
  5. Alex LuMonday, May 03, 2010 4:08:00 PM

    Hi Yee Ling,

    Since the post, BJToto has failed to stay above the breakout level of RM4.60. In which case, it is likely to slide back to the resistance-turned-support of RM4.50. If you feel that BJToto is unlikely to break through the RM4.60 level, then you should sell near or at the RM4.60 level. However, if you feel bullish about the stock (since it has broken above the RM4.50 level), then let it test the RM4.60 level again. Your course of action would depend on the outcome of this event- to sell if it cannot break above the RM4.60 & to hold onto the stock on successful breakout above RM4.60. If the former were to happen, the stock would drop back to RM4.50. If the latter were to happen, the stock could easily go to the next resistance at RM4.80-4.85.

    ReplyDelete
  6. IvanMonday, May 03, 2010 5:53:00 PM

    tq dude. .
    u are really power. .
    even making 10% net gain per trade (that is my objective) . .i think i am satisfied with the performance. .

    if every mth i can archieve 10% per trade per mth . .haha . .with the computing effect, net net shall at least more than 120% per annum :D . . i am dreaming :) haha . . .

    ReplyDelete
  7. UnknownMonday, May 10, 2010 11:52:00 AM

    Thanks a lot, Alex :-)

    ReplyDelete