Tuesday, December 21, 2010

Bursa Malaysia: HAIO TP at RM1.61

Company Name : HAIO
Target Price : Fr RM1.61 to RM2.71
Research Company : AFF/OSK (20 Dec 2010)

Yesterday, bears were still hiding behind the bush as they were told not to sell during panic selling. Today, the bears could no longer take the pressure and show their hands after HAIO was pushed down 22 cents by the Smart Money. The volume was ultra high at 2.93mil, however it's still far behind 7.44mil recorded on the previous shake-out. This shows that the supply is really short now.

Many looking for a quick trade may have made entry today. Both RSI and Stochastic were giving 'buy' signal. But mostly the price will further push down a bit simply because the Smart Money want to shake out these buyers too. This is a trade setup.

Take a step back and look at the trend again. Since the previous shake-out following quarterly financial report release (30/9), the trend has actually begun to go side way. If the Smart Money is bearish as before, the price would drift along the center of the linear regression lines. It's clear that the price was moving within a horizontal trend channel. The Smart Money had made enough accumulation and this is the final one before making a bull call.

With such 'ugly' financial report it's hard to imagine that the stock price would raise. But if you understand the Wyckoff Schematics (accumulation), this definitely make sense.

Source: Kelvin Yam, Bursa Malaysia, 21 Dec 2010

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