ChartNexus 3-hr Stock Screening Workshop

ChartNexus 3-hr Stock Screening Workshop

ChartNexus runs this free 3-hour Stock Screening Workshop every Wednesday at their training center at Menara UOA, Bangsar. Location is strategic, adjoined with Bangsar LRT station. Since I chose to drive there, a raining night yesterday, I had to fork out RM7 for the parking. Whoa not cheap at all. 

Prerequisite to attending this workshop. You gotta have ChartNexus software installed on your laptop. And ofcourse, bring your laptop to the workshop as it is a practical session. You can download chartNexus for free. 

The trainer began the session by briefly running through the basic operations of ChartNexus Software. Pretty easy to use. It’s a breeze to draw trend lines and highlight turning points. Without further ado, he launched into the analysis of KLCI. 

FBM-KLCI

Looking at the 20-day moving average, KLCI is trending up. Uptrend is accompanied by increasing volume, which strengthens the pattern.

Support at 1466. If can break out of 1491 with high volume, KLCI can reach 1513, resuming uptrend.

Macd getting shorter. Wait for curve up.

Macd warning: going against the rise of klci, bearish divergence

Airasia

Airasia, on 23^rd Sept 2011, trading out of Bollinger band, in a downtrend.

Hollow candle (oval highlight), buy signal. Filled candle(second oval highlight); sell.

Next, he introduced Xpert Trader, a paid module. With Xpert Trader, one can specify stock screening criteria. He demonstrated screening by Volume increase by 30% in the last trading day.

AMMB

At current, AMMB trading at lower Bollinger band. Good volume. Form bullish reversal pattern. Immediate resistance is 20-d MA. Risk-reward: buy at support 5.63, sell at resistance 5.83. It had formed a doji at support. Wait for green light from MACD. Green light means MACD bars turning from red to green. Somehow, MACD did not show up in the chart I captured. MACD bars for AMMB is red fyi.

Boustead. 

High volume. Doji is formed. Forming a Bollinger band squeeze. When stock moving on a sideways, Bollinger band is the best indicator.  Wait for breakout above 5.50.

Coastal

Bearish engulfing is observed. A filled candle engulfs previous day white candle (See oval highlight). It is also sitting on a resistance line of 1.99. Not a good time to buy. Immediate resistance is 20-Day average at 1.87. If it breaks below 20-d avg, it may retrace to 1.77

We also briefly went through a few other stocks in the same manner; using Bollinger band, resistance and support lines, 20-day MA, and break out points.

*Source of all charts in this entry is from ChartNexus software. 

 

Now, my view on the whole session. I am not big on Technical Analysis. I acknowledge its importance as it reflects investor’s psychology, the herding effect, but using it alone to pick stocks is unconvincing. The trainer makes stock selection too simplified. Buy here, sell there. Strangely, his muffled voice doesn’t sound like he means his buy n sell calls. 

However, learning a trick or two on Technical Analysis is beneficial. I’d still like to be able to detect a change of trend at KLCI; something more than just looking at 20-day MA and Bollinger bands. 

ChartNexus runs a full 4-day course on Technical Analysis charting from Friday-Tuesday. The cost is about RM5000. Honestly, if I have 5K to spend on seminar, I’d go for Milan Doshi’s property course. But that’s just me.