Is this a good time to watch MYEG 0138? (Operator Analysis Point of View)

Every investors and traders are eyeing at MYEG 0138 recently. Probably because of fundamentally is good, which we are not sure about it, because we don’t look into fundamental.

 

But for what we think, the business idea of MYEG is great because it provides convenience to users.

 

However this blog is not going to touch on fundamental. But more on the price & volume, to see whether now is a good time to watch this stock. Every investors know which stocks is worth to invest in, but not knowing “When” is the best time to move in. Some might use technical analysis to find where is the support and try to move in at the support. But often “Mr Support” always fail and introduce Mr Support no. 2, no. 3, and so on.

 

The reason why support and resistance is not very effective is because the analysis is not details enough to tell investors and traders that the support is strong enough to rebound. That’s where we have to read into “tape reading” also known as Price & volume analysis. We look into price & volume of the big boys to determine when is the time that they move in. Is always good to move in together with the big boys, so the price will move at the sametime when we move in.

 

So let’s take a look into MYEG. Has the big boys ready to push higher? Answer is no. Here’s why :

 

You will notice that during the day of the high volume on 31st May 2018 (red box), it seems bullish to most technical analyst. But from our Operator Analysis point of view, it is telling us that they are attracting buyers when we look into the 5 mins chart.

 

How to see they are just attracting buyers in and the price up is just short term? Look at the 5 mins chart below, you will see price press down after a hike ( in yellow boxes). This is telling us that they are pushing the price up to attract buyers to come in and queue at the lower buy price order. Buyers in the market always like to buy stocks at a lower price. This is the psychology that they are targeting the retail traders & investors to jump in, so that they can sell the shares down to them, some say this movement is because the bull need some rest. But in fact the real reason behind is not the bull need to rest, is because the big boys are selling to the retail investors & traders parking at lower buy price.

0138.MY5 mins

 

This is one of the price and volume movement that tell us that the big boys are not back into the market yet. So to those who are thinking of adding more position into MYEG, this is not the time yet, and is not the bottom yet.

 

You might argue that the price now is RM 0.7, it can’t go anywhere lower. There are many stocks in the market are always doing wonders in going south, you think is too low, it goes lower. One of the example you can look at is CIMB, from RM 9 drop to RM 6, at RM 6, many followers are asking us whether worth to buy. Because is at the low now, thinking it will not go anywhere lower, then the price goes down lower to RM 4.

1023.MY CIMB

 

Moral of the story, is not what you think about the stock price whether is too low or too high, is about listening to the stock price and based on the price & volume to tell us whether it will go higher or lower.

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DISCLAIMER : All stocks share here are based on the speaker’s point of view. It does not constitute an offer to buy or sell stocks.Viewers are responsible on their own trading decisions. All stocks share here are based on short term outlook of the stocks, it is not suitable to based on above stocks list for long term reference.

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