BOUGHT - VISA, MASTERCARD, INTEL, FACEBOOK
Hi All,
This is my first official post. Apologies it took so long but I have been sorting out some things with uni, work etc.
This is a little lengthy because I decided to buy all 4 in one day. I do utilise some fundamental analysis (analysing financial results) in my trading but this post will be mostly on technical entry points since doing full analyses for 4 companies will probably be excessive for 1 post. In the future, I will be providing my full reasoning for entering a stock.
Without further ado let's go through my recent decisions to buy the above companies.
Disclaimer: All of the following are based on my subjective analysis and is not to be taken as financial advice.
VISA
Bought: 11 shares; Av. Price 138.25; Long; 5th August.
Technical Analysis
Needless to say Visa is a strong company which is profiting on the move from cash to electronic payment and is a leading player in this field.
Trend/ Moving Average:
The price is trending above the 200 EMA, 100 EMA and my 20 period McGinley MA with all of these moving averages pointing upwards indicating a trend. The stock has been trending for the past year. The stock had a minor pullback from around $143 and found support at the McGinley dynamic moving average which was also a prior high. Therefore it provided a strong support which supports my theory that it will continue its uptrend from this point.
On the weekly chart all moving averages are also pointing upwards.
The MACD indicator remains above the 0 line on both the weekly and daily charts, and has begun converging again on the daily which is suggestive of the pullback continuing to newer highs.
Oscillators:
Lane's stochastic has crossed further supporting my theory. It has not reached oversold territory so the indicator isn't the strongest but has escaped overbought so in the short term should continue upwards. The CCI complements this is heading above the 0 line.
Because of the uptrend, I bought this minor pullback at support and the convergence and oscillators indicate the trend is likely to continue.
Stop loss of 2x Average True range volatility = stop loss at 132.25. Risk = 4.3%.
UPDATE - 22 Aug. **** Sold at 139.9. Stock was ranging on low volume. No movement, look for opportunities elsewhere. Pretty much breakeven (negligable profits). Will reconsider once breaks resistance and gains more volume/ starts trending.
Mastercard
Another mobile payment stock. I love this stock as my last trade returned an annualised return of over 50%. WOWZA!
After reporting stellar earnings, the stock price stumbled a little on investor fear which I find to be a great entering opportunity. I mean they posted great results this quarter.
Bought: 8 shares; Av. Price 202.12; Long; 5th August.
Technical Analysis
It fell from a high of 215.
Trend
Once again it found support at the 20 period McGinley all Moving averaging pointing upwards. The McGinley dynamic is flattening which may indicate the stock entering into a range which is not a wonderful sign but I am still confident in the short term at least.
It found support at not only the McGinley MA but also a prior high trendline and general trend line which I find to be very strong support. A worry is whether it will break the upper trendline (see the white line in the image) or stay in a range, but we will see what is going to happen.
The most recent day bar has a long tail which indicates rejection moving lower back down to the support level.
Oscillators
Since trend is giving mixed signals (unsure of ranging or trending). The influencer for my buy decision were oscillators which work in ranges.
Lane's stochastic crossed indicating a buy since the stock is oversold. The CCI has also returned after reaching oversold (-100) which indicates a buy. My only worry is the slightly flat CCI however overall, the case is a buy, albeit not as strong as Visa's buy signal.
Stop loss of 2x Average True range volatility = stop loss at 192 ish. Risk = 5%.
UPDATE - 22 Aug. **** Sold at 139.9. Stock was ranging on low volume. No movement, look for opportunities elsewhere. Pretty much breakeven (negligable profits). Will reconsider once breaks resistance and gains more volume/ starts trending.
Intel
Bought: 30; Av. Price 49.43; Long; 5th August.
After posting also great results for this quarter, the stock price plummeted on fears of its new chip being released later than expected. I find this unjustified.
Technical Analysis
Looking back I probably shouldn't have made this trade because I am not that confident with it looking at it now. I guess sometimes emotions still get in the way. But that's okay because I have my stop loss. I probably would've waited a little more to see instead of getting in so early but we'll just wait to find out.
Trend
After the pullback, MA found support at the 200 EMA which is also a prior low. However, the 20-period McGinley has crossed the 100 EMA so I should've waited for it to cross back above before buying in hindsight. I just had FOMO about missing the comeback. I've also drawn a trendline of the prior lows which is at around $50 and should've waited for it to break this resistance level, especially given the doji candle which is not a strong confirmation of trend.
However, the MACD is converging from under the 0 line which is a strong leading indicator that Intel will head up, at least in the short term.
Oscillators
Oscillators are giving a strong buy signal which sort of makes up for the mixed signals given in trend. This is why I entered and took a slightly riskier position than I would've liked but we will wait to see how this plays out.
The CCI is pushing back above the -100 level which suggests it is moving out of oversold, a comeback in the short term. The Lane stochastic also crossed why confirms this.
Stop loss of 2x Average True range volatility = stop loss at 46.50 ish. Risk = 6%.
UPDATE - 15 Aug. **** Stopped out at 47.98, Intel failed to breakout. Loss of 3%.
Facebook
This is perhaps a controversial one given the huge drop after earnings which were "terrible". I disagree. Although growth is expected to slow, the projections are still really good and Facebook is still a fundamentally great company. The growth prospects are still strong.
Unfortunately my stop loss didn't trigger in time (it just went straight through it) in after hours so I couldn't take a lot of the profit. I was still able to make a decent 20% return but it could've been a lot more. (This may or may not have influenced my decision)
Bought: 10 shares; Av. Price 177.04; Long; 5th August.
Trend
Facebook found support at around 170. However all moving averages are pointing downwards which is no a good sign. In hindsight I should've waited. A major resistance would be the 200 EMA and I am waiting for a breakout of this level. Otherwise I will probably close my position.
The MACD is however converging so it is a buy signal, indicating a potential rise in price. The small doji in the last trading session is a bit of a concern though.
Oscillator
Strong buy signals from oscillators with the CCI returning above the -100 oversold line and Lane stochastic crossing. Previous major declines ended at the resistance line level on the CCI therefore it is not likely to return to this level. A strong buy signal.
Stop loss of 1x Average True range volatility = stop loss at 167.82 ish. Risk = 5%.
UPDATE - 16 Aug. **** Stopped out at 177.37, failed to breakout. Breakeven.
This is a VERY long post and in the future they will be more focused (1 stock) and more concise.
Thanks for Reading!
Howard....
This is my first official post. Apologies it took so long but I have been sorting out some things with uni, work etc.
This is a little lengthy because I decided to buy all 4 in one day. I do utilise some fundamental analysis (analysing financial results) in my trading but this post will be mostly on technical entry points since doing full analyses for 4 companies will probably be excessive for 1 post. In the future, I will be providing my full reasoning for entering a stock.
Without further ado let's go through my recent decisions to buy the above companies.
Disclaimer: All of the following are based on my subjective analysis and is not to be taken as financial advice.
VISA
Bought: 11 shares; Av. Price 138.25; Long; 5th August.
Technical Analysis
Needless to say Visa is a strong company which is profiting on the move from cash to electronic payment and is a leading player in this field.
Trend/ Moving Average:
The price is trending above the 200 EMA, 100 EMA and my 20 period McGinley MA with all of these moving averages pointing upwards indicating a trend. The stock has been trending for the past year. The stock had a minor pullback from around $143 and found support at the McGinley dynamic moving average which was also a prior high. Therefore it provided a strong support which supports my theory that it will continue its uptrend from this point.On the weekly chart all moving averages are also pointing upwards.
The MACD indicator remains above the 0 line on both the weekly and daily charts, and has begun converging again on the daily which is suggestive of the pullback continuing to newer highs.
Oscillators:
Lane's stochastic has crossed further supporting my theory. It has not reached oversold territory so the indicator isn't the strongest but has escaped overbought so in the short term should continue upwards. The CCI complements this is heading above the 0 line.
Because of the uptrend, I bought this minor pullback at support and the convergence and oscillators indicate the trend is likely to continue.
Stop loss of 2x Average True range volatility = stop loss at 132.25. Risk = 4.3%.
UPDATE - 22 Aug. **** Sold at 139.9. Stock was ranging on low volume. No movement, look for opportunities elsewhere. Pretty much breakeven (negligable profits). Will reconsider once breaks resistance and gains more volume/ starts trending.
Mastercard
Another mobile payment stock. I love this stock as my last trade returned an annualised return of over 50%. WOWZA!
After reporting stellar earnings, the stock price stumbled a little on investor fear which I find to be a great entering opportunity. I mean they posted great results this quarter.
Bought: 8 shares; Av. Price 202.12; Long; 5th August.
Technical AnalysisIt fell from a high of 215.
Trend
Once again it found support at the 20 period McGinley all Moving averaging pointing upwards. The McGinley dynamic is flattening which may indicate the stock entering into a range which is not a wonderful sign but I am still confident in the short term at least.
It found support at not only the McGinley MA but also a prior high trendline and general trend line which I find to be very strong support. A worry is whether it will break the upper trendline (see the white line in the image) or stay in a range, but we will see what is going to happen.
The most recent day bar has a long tail which indicates rejection moving lower back down to the support level.
Oscillators
Since trend is giving mixed signals (unsure of ranging or trending). The influencer for my buy decision were oscillators which work in ranges.
Lane's stochastic crossed indicating a buy since the stock is oversold. The CCI has also returned after reaching oversold (-100) which indicates a buy. My only worry is the slightly flat CCI however overall, the case is a buy, albeit not as strong as Visa's buy signal.
Stop loss of 2x Average True range volatility = stop loss at 192 ish. Risk = 5%.
UPDATE - 22 Aug. **** Sold at 139.9. Stock was ranging on low volume. No movement, look for opportunities elsewhere. Pretty much breakeven (negligable profits). Will reconsider once breaks resistance and gains more volume/ starts trending.
Intel
Bought: 30; Av. Price 49.43; Long; 5th August.
After posting also great results for this quarter, the stock price plummeted on fears of its new chip being released later than expected. I find this unjustified.
Technical Analysis
Looking back I probably shouldn't have made this trade because I am not that confident with it looking at it now. I guess sometimes emotions still get in the way. But that's okay because I have my stop loss. I probably would've waited a little more to see instead of getting in so early but we'll just wait to find out.
Trend
After the pullback, MA found support at the 200 EMA which is also a prior low. However, the 20-period McGinley has crossed the 100 EMA so I should've waited for it to cross back above before buying in hindsight. I just had FOMO about missing the comeback. I've also drawn a trendline of the prior lows which is at around $50 and should've waited for it to break this resistance level, especially given the doji candle which is not a strong confirmation of trend.
However, the MACD is converging from under the 0 line which is a strong leading indicator that Intel will head up, at least in the short term.
Oscillators
Oscillators are giving a strong buy signal which sort of makes up for the mixed signals given in trend. This is why I entered and took a slightly riskier position than I would've liked but we will wait to see how this plays out.
The CCI is pushing back above the -100 level which suggests it is moving out of oversold, a comeback in the short term. The Lane stochastic also crossed why confirms this.
Stop loss of 2x Average True range volatility = stop loss at 46.50 ish. Risk = 6%.
UPDATE - 15 Aug. **** Stopped out at 47.98, Intel failed to breakout. Loss of 3%.
This is perhaps a controversial one given the huge drop after earnings which were "terrible". I disagree. Although growth is expected to slow, the projections are still really good and Facebook is still a fundamentally great company. The growth prospects are still strong.
Unfortunately my stop loss didn't trigger in time (it just went straight through it) in after hours so I couldn't take a lot of the profit. I was still able to make a decent 20% return but it could've been a lot more. (This may or may not have influenced my decision)
Bought: 10 shares; Av. Price 177.04; Long; 5th August.
TrendFacebook found support at around 170. However all moving averages are pointing downwards which is no a good sign. In hindsight I should've waited. A major resistance would be the 200 EMA and I am waiting for a breakout of this level. Otherwise I will probably close my position.
The MACD is however converging so it is a buy signal, indicating a potential rise in price. The small doji in the last trading session is a bit of a concern though.Oscillator
Strong buy signals from oscillators with the CCI returning above the -100 oversold line and Lane stochastic crossing. Previous major declines ended at the resistance line level on the CCI therefore it is not likely to return to this level. A strong buy signal.
UPDATE - 16 Aug. **** Stopped out at 177.37, failed to breakout. Breakeven.
This is a VERY long post and in the future they will be more focused (1 stock) and more concise.
Thanks for Reading!
Howard....
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