Breakout - GENM

GENM (4715)

GENM is a good stock for trading purpose.

Breakout #1 : After 7 months, with 5 times of price hitting resistance level of RM3.73, the price broke out. 5% profit could be generated from the price breakout, after 3 weeks.

Breakout #2 : Since price hit RM4 on the 1st of July 2013, and another 2 episodes of price reaching resistance level, opportunity knocks again. Price pierced through RM4 to close at RM4.01. Anyone bought at closing time, would have been smiling all the way to the bank as a long white candlestick appeared the next day. Profit was a cool 5% in 24 hours!

Breakout - Favco

Favco (7229)

A similar uptrending, Hapseng-like stock. The potential profit after each breakouts for the past 2 months is big, ranging 11%-15%.

Breakout #1 - Four days before, the price did break out but it went south. It did manage to break the resistance line again, only to move down, touching the support line. When the very clear long white candlestick appeared, it would have rake it at least 11%.

3 weeks passed before Breakout 2 was formed. And profit taking should be done the next day when the long white candlestick was made.

Breakout #3 was fast and furious. 15% profit on Day3! But not with a shooting star.

Price is currently consolidating, awaiting breakout. Trade breakout #4, anyone?

Breakout - Hapseng

Hapseng (3034)

A very nice uptrending stock with several opportunity of breakouts' buyings.

A good fundamental stocks. In a short two months' time, one can easily earn 15% on this one stock alone if one adheres to the trading plan. If one is patient enough. If one doesn't cut loss unnecessarily based on market sentiment.

Once breakout, the stock will have long white candlesticks, and it's time to sell.

As currently KLCI hovers around 1800, at its resistance level, the profit margin are reduced dramatically. With a clear doji at the top, probably it's time to say thank you and see you again.

Breakouts

I bought my first 2013 KLCI stock on 3rd June 2013 with the breakout strategy.

My understanding of breakout was based on the info given in the site. http://www.investopedia.com/articles/trading/08/trading-breakouts.asp.

Ivory (5175)

Support horizontal line was formed at RM0.725 as the price moved higher and soon after two long black candlesticks were formed. Support was breached.

On the next day, there was a price breakout at RM0.725, giving an opportunity to initiate a buy. But, it was always better to have a confirmation. 4 days later, price went back to support line.

Another breakout was seen on the next day, a good time to buy, which I did at RM0.725. Selling price should be at the resistance of RM0.75. Cut loss at RM0.70, giving a risk reward ratio of 1:1.

The price did go higher than the anticipated level and went back to support line days later, followed by another buying opportunity the next day.

But as soon as the Three Black Crow candlesticks was formed, it's the end of the trading of Ivory, for the moment.