In previous article, I have talked about the game of patience of this stock.
In this article, I am going to follow up of my previous article. I am going to talk about why people should look at money flow indicator to make a decision.
It is about inflow of money to the stock!
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It is PUC again! I have already explained about fundamental and technical in previous article, so I am not going to talk about it here.
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Investors should be patience with this stock rather than give it up as it is still in accumulation phase.
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Looking
at its money flow indicator, based on chaikin money flow, it is still
hold up well above zero line. The zero line is an important benchmarkof
inflow and outflow of money to the stock.
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Smallish
changes above zero line is not meaningful. It is rather hot money still
in the stock. It is just a matter of timing to be cooked up.
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Lets take an example of hot stock in the market right now, AHB Holdings.
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I drew two vertical lines, left line and right line.
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The
left line on money flow indicator shows that inflow of money, from
below zero to above zero and price changed although still in
consolidation. It followed then by smallish changes and uptrend in the
money flow indicator in line with price rally. Same goes to right line.
Smallish changes in the circle and continued upward today in line with
price rally.
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How about FBMKLCI?
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The
recent volatility in FBMKLCI movement shows outflow of money, downtrend
in trend indicator. This was in tandem with MIDF weekly fund flow
report on net foreign selling.
- Conclusion, it is important to look at this indicator before making a decision!
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PUC still HOLD up very strong! My TP is at 25-28sen!
