SWING TUTORIAL - MFSL

23 ต.ค.

In this tutorial, we analyze the stock MFSL (MAX FINANCIAL SERV LTD) identifying a lucrative swing trading opportunity following its all-time high in July 2021. The stock declined by nearly 50%, forming a Lower Low Price Action Pattern, but subsequently reversed its trend.

At the same time, we can also observe the MACD Level making a contradictory Pattern of Higher Highs. This Higher High Pattern of the MACD signaled the start of a Bullish Momentum, thereby also signaling a good Buying Opportunity.

The trading strategy yielded approximately 80% returns in 71 weeks. Technical analysis concepts used included price action analysis, MACD, momentum reversal, trend analysis and chart patterns. The MACD crossover served as the Entry Point, with the stock rising to its Swing High Levels of 1148 and serving as our Exit too.

As of wiring this tutorial, we can also notice how the stock is making a breakout and retest of the Swing High levels and trying to continue its momentum further upward trying to make a new All Time High.

KEY OBSERVATIONS:

1. Momentum Reversal: The stock's price action shifted from a bearish to a bullish trend, indicating a potential reversal.
2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure.
3. MACD Crossover: The successful crossover in May 2023 confirmed the bullish trend, creating an entry opportunity.

TRADING STRATEGY AND RESULTS:

1. Entry Point: MACD crossover in May 2023.
2. Exit Point: Swing High Levels - 1148.
3. Return: Approximately 80%.
4. Trade Duration: 71 weeks.

NOTE: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing Price Action, MACD movements, and Reversal patterns, traders can pinpoint potential entry and exit points.

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