Hi Traders
If you have been following my blog post, you would have noticed that I had sold off OSIM stock on 17th December after enjoying a hell of a good ride. In that post, I uploaded two charts on why I decided to sell and where were the possible support level after I sold off. If you missed the post, click on the link >> http://volume-price-spread-for-metastock.blogspot.com/2010/12/171210-closing-trade-on-osim-after-good.html
In the post, on the weekly chart, I mentioned that I was watching two possible support levels, $1.30 - $1.45.
If price could maintain above either level, the up trend would be intact.
Look at the above chart, one day after I sold off on 17th Dec, OSIM traded to a day low's of $1.45 on 20th Dec. I was sitting on my trading desk watching how this level would be supported. If this level could not support the fall, the next possible support would be $1.30 level.
20th Dec day's low of $1.45 turned out to be a nice support level, price started to move sideway and along
the channel low. Expert indicators such as "Reduced Selling Pressure" were triggered in two occassions
indicating that the sellers could be taking break and nolonger eager to push price lower.
Indeed on the 27th, price started to turn positive with narrow spread. This was a good sign to show that price was nolonger going down.
23rd & 24th expert indicators "Reduced Selling Pressure" had clearly indentified that the price had bottom and 27th was the confirmation day.
With background strength for the past few days, OSIM was bought in by Smart Money therefore the price closed at day's high of $1.61 with substantial volume to support this buying spree. I decided to follow this
buying momentum and joined in the game while I know that most of the traders could be feared and recovering the shock when OSIM fell from $1.71 to $1.45 where profits could be totally wiped clean.
Amazing, my proprietary indicator triggered " Smart Long" after end of the day which is a Buy Signal.
Look at the Diamond Scanner below, OSIM was picked up from the 900+ stocks to be further analyze by
me for the tomorrow trading business. When both "Smart Long" & "Go Long" are shown on a particular
stock, it usually commands my attention to do further analysis on the underlying support and demand.
Just like the rest of the stocks with both expert indicators triggered, "Genting HK", "Cosco", "Indofood" etcs
these stocks are likely to display strength after the Diamond's appeared.
Therefore, you may want to check out these few stocks besides OSIM, you maybe hitting the jackpot again.
