Technical Analysis of Maksons: Part Two on 23 Jan 2017

Technical Analysis of Maksons: Part Two on 23 Jan 2017

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

Before going into this analysis, I would like to evaluate the previous analysis of Maksons made on 4 Dec ’16: http://imti77az.blogspot.com/2016/12/technical-analysis-of-maksons-spinning.html

Opportunity to buy was around 7.3 – it came to 7.3 on 6 and 7 Dec and then went on an up move. I would say perfect – and lucky also ;-)

Target price was forecasted around 10 before next year's declaration. But due to the crazy bull we had, it reached 10.4 on 18 Jan ’17.

Generous market gave an early profit and now offers a second bite at the cherry.

Likely Fibo retracement to 8.5-9 seems likely after which an up move could be expected.

Based on Q2 declaration, market will speculate whether it will go down to 7 or halt at 10.5 or consolidate before moving to 13-14 supply zones.

I would set Stop Loss at 8.

If you are not bothered with Funda, you might consider the next wave of Maksons move . . .

I think Peter Lynch would have agreed that it is worth trying 100 shares of Maksons around 8.5 (total investment of 850) instead of buying a shirt priced at that rate. With patience, later on you might be able to buy a shirt and a tie (something I hate wearing - ugh)!!!