Tuesday, November 06, 2012

MNRB Moving Higher

Every trade is a battle between a bull and a bear. The bull wins if the price moves up after the opening price; the bear wins if the price moves down. This should be easily understood.

Volume signifies interest. The higher the volume transacted, the more interest is shown in the stock. Thus big volume means more bulls and bears are participating in the fight.

The closing price of the day is the one to note. If the closing price is higher than the opening price, a white candle will be shown in the chart. If the closing price is lower than the opening price, the candle shown is black. Thus,a white candle means the bulls have the upper hand and a black candle means the bears are stronger.

MNRB opens at 3.09 with 10 lots traded. As a continuation of yesterday's run, the price promptly moves up to a high of 3.22 by 9.20 a.m.

Volume transacted is above normal. Because the price is moving too fast, profit-taking sets in. This pushes the price down. At the close of this morning's trading, the priced ends at 3.14, up 5sen. Total volume comes to 5174 lots which is above average for MNRB.

I notice that there is a lot of support at 3.10. I think this level should not be breached by the end of the day. Action to take is to average up if you have bought when the price was lower.

As usual, you listen to me at your own risk. The opinion expressed is that of the writer. You have your rights to disagree.