Recently quite many stock in BURSA stock market went limit up. I can conclude a few similarity why these stock can get LIMIT UP. Lets us study recent stock that go LIMIT UP listed below : 1. BIG (7005)
2. HWATAI (8478)
3. KEINHIN (7199)
4. SAM (9822)
If check carefully actually all have very similar pattern, reason.
1. BIG (7005)
Fron big picture, can see that BIG have been sideways for almost 15 years, and the prive movement have been quite slow and no much volume traded. Once the price manage to break the ceiling resistant, it burst up limit up. The price before 2005 also manage to went up quite high, this give a image that the stock used to be very high before, so once break the sideways trend, the upside can be so much.
Breaking RM 1.0 resistant also one of the key effect that help it go limit up, as every bid above RM 1.00 is by 1 cent, instead of 0.005 cent. We can see obviously that the previous movement have been quite slow and no body touch, that's one of the key criteria too. Low volume traded stock.
From big picture, HWATAI also have similar pattern like BIG, which is sideways for many years, then price used to be quite high before it go down sideways. Once the price break the ceiling resistant, it burst up limit up.
Can see that it also dont have much volume before it go limit up, another similar pattern like BIG.
Look at big picture, KEINHIN also just break 2016 year high then go burst limit up. Its another very low volume stock.
Again, it break RM 1.00 which trigger it to go limit up similar like BIG.
Again, look at big picture, SAM have just break the resistant ceiling, and burst up LIMIT UP new high. This is very classical pattern as after break new high, no more resistant to go higher up. Again after price go above RM 10.00, it move up by 2 cent instead of 1 cent, similar like BIG, KEINHIN, have the bid different effect.
What we know is that SAM is push by some rich retailer, so as long as got retailer have interest, it can go LIMIT UP.
Not to mention about GENETEC, KOBAY, they all have similarities, low volume, price break new high.
Why limit up will happen, simply because when price break new high, everyone is winner, no one willing to let go easily, that why buyer will buy all the way up until it go up even higher only shall see seller.
By looking at 4 cases study above, some of the criteria for stock to go limit up as below :
1. Lower volume traded before it break new high.
2. Small total share issue below 300 million share. 3. Price break many years sideways resistant ceiling. 4. Bid different after RM 1.0 or RM 10.00. 5. Have no similarity in business, any sector have potential to limit up. 6. Many year back price stay higher and drop to very low sideways many year. 7. Quarterly earning not major consent as some did not posting new high result. 8. So long market have interest, it will LIMIT UP.
I have already found a few stock have the criteria above, however I will only share it if this article get very good respond. You may comment and share what stock you think fit criteria above, so that everyone may have a chance to ride on LIMIT UP stock earlier.
Stay tune if you want I share stock that I think shall LIMIT UP soon.
(this sharing is not suggesting to buy any stock mentioned aboved, purely personal studies only)
good sharing!
You are so right brother
cant wait another sharing bro
Interesting finding...
Thanks for your insight. Please share us the new potentially LU stocks
Regarding ARBB, I have some doubts. 1. it has mostly non/cash earnings. 2. profits were lower last year(18%) than previous year(28%). 3. Shares were substantially diluted during past one year. 4. Market cap is still quite low! probably we may have to wait awhile before it's fundamentals improve. Raghu.
it does sound like wyckoff. but have no idea what screener can be used to find these kind of stocks