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Tuesday, 30 August 2016

Coastal (KLSE: 5071) Technical Analysis: 30 August 2016, Tuesday, 11.35am Singapore Time

Coastal (KLSE: 5071) Technical Analysis: 
30 August 2016, Tuesday, 11.35am Singapore Time

Below was a question that was posted to me and it was kinda good question: 
"Does KLSE: BONOIL chart analysis (extension also to SGX: GeoEnergy and PSE: Philex Petroleum Corp and NYSE: Phillips-66) apply to all counters? And I'm wondering if those oil related stocks that have low volume trading, how chart analysis applies to those stocks then? (Eg: Coastal contracts klse.5071) Thanks."

My answer:
 When we do analysis, it often has to be industry-wide phenomenon first before zooming laterally to inter-industry and zooming vertically to individual stocks and individual companies of the industry in focus. Top-down approach as preference. Although outliers do exist, however outliers are often rare and few. A tide or a wave moves almost all boats. The chart above answers the question as well for low volume 3rd liners. 3rd liners will usually rally after 2nd liners do and 2nd liners rally after 1st liner big caps do. Hence, the bottoming for 3rd liners will often be a wider time frame, bigger mouth U-shape (refer to Coastal Technicals as above). Cross reference to first liners such as Phillips-66 (http://donovan-ang.blogspot.sg/2016/07/phillips-66-technical-analysis-28-july.html) that is listed in New York Stocks Exchange (NYSE: PSX), while the first liners prepare to break up, the 3rd liners are bottoming as like Coastal (KLSE: 5071). Intra-national and inter-national, the mechanism is the same.

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