Daily PACS Dec. 20, 2011

Author’s additional notes:

The general market’s trend turned up yesterday. Although it is up, other sectors like banks, property and mining continue to weigh on the market and are still down. Note that TEL has a big influence on the composition of the index. It is safe to conclude that the gains that we experience yesterday can mostly be attributed to TEL which was also up and not the broader market.

As a trader, we can’t afford to have so much biased and so we will continue to give the market a chance to prove itself further by waiting if other sectors mentioned above will follow and will also turn bullish. If that happens then we can slowly increase our exposure by increasing the amount of money we invest in the market. But for now, we will remain cautious and be vigilant in watching our sell points closely.

For trade ideas today, watch AAA. The following are its resistances for today only…they are 3.57, 3.68 followed by 3.85. Hold if 3.85 break above but keep a stop loss just underneath it just to play safe. Once 3.85 breaks, the next resistances to watch are 4.23 followed by 4.48.

Initial support can be seen at 3.37-3.35. Cut if after buying, 3.32-3.30 breaks or 3.68 fails to break.

Remember to buy not going down but on the way up at the bounce near support or at the break of resistance. Also note that once resistance is broken, it automatically becomes support (Normally just below the resistance turned support is where a trader will usually place a trailing stops to protect profits once they appear).

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*Please note that PACS’ price  alert level will always supersede any opinion coming from the author.

*Try not to chase stock and always try to buy or sell near PACS given level.